Qualification > Commerce

peopleeeeeeeeeeeeeeeeee-eco paper 3

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nid404:
i can help u with trade and balance of payments. ive attached the ppt

Coco:
eeey
was wondering if anyone could tell me the advantages and disadvantages of specialisation at national and reginol level??

nid404:
http://tutor2u.net/revision_notes_economics_gcse.asp

i hope the site helps u

Name:

--- Quote from: aquarian93 on May 27, 2009, 08:58:24 am ---hey  can i pleaseee hav a powerpoint on TRADE and MONEY AND BANKING, ill be rlly grateful! thank you! :)

--- End quote ---

hey, i hope this helps :

Money
The functions of money:
•   As a medium of exchange:
Because money is acceptable in exchange for all if the goods?we don’t face the difficulty of bartering

•   As a measure of value   
All goods can be expressed in terms of one single commodity called ‘money’

•   As a store of value
Money is a much better convenient store of value than chicken, pencils…it holds its value better than most other commodities although inflation causes it to lose value over time

•   As a means of deferring payment
Convenient way if measuring how much people owe other people.  A barter economy would find this difficult. E.g. Apples: big or small? Fresh?

•   Money is divisible
Can easily be divided into smaller units.  $1 = 100 cents

‘Good’ money is:
•   generally acceptable by society
•   durable (hard wearing, can be used over and over again)
•   portable (easy to carry around)
•   divisible (to determine prices for low value goods)
•   scarce (if it is not scarce then it has no value)

In specialisation societies, the surplus is traded for the goods we have chosen NOT to specialise in.  Money enables a rate of exchange (price) to be set so that trade can take place?enables us to benefit from specialisation

Central Banks
•   The bank to the government of an economy and the banker’s bank
E.g. Bank of England, Fed, European Central Bank
•   Responsibility for issuing the notes and coins of their currency
•   Manages the gold and foreign currency reserves of an economy
•   Manages the national debt of an economy
•   It regulates and supervises the banking system
•   It is ‘lender of the last resort’ to the banking system (the retail banks often need to borrow from the Cbanks)
•   It sets the main official interest rate in the economy

Governments usually have complete control over Cbanks but more and more countries have made Cbanks independent of the government.  E.g.: Bank of Mexico, England, Japan, the Reserve Bank of India, etc.

Commercial (Retail) Banks
•   Provide a ‘link’ between these willing to save money and those wishing to borrow money
•   Somewhere safe to store money
•   Provides convenient methods of payment (debit/credit cards, cheque books, internet, etc.)
•   Financial and tax planning advice
•   Provides insurance
•   Buying and selling shares for their customers

hope i helped :)

do you also want something about the stock exchange?

aquarian93:
thanks Name! that helped, especially the bank stuff! :) yea sure, would appreciate smthng on stock exchange! (by that u mean shares n stuff rite?)
and wts this +rep ppl keep toking abt? im new to this forum so yea :)

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