Summary
Money, banking, and trade unions are key components of microeconomic decision-making. Money serves as a medium of exchange, a measure of value, a store of value, and a means of deferred payment. Banks act as intermediaries between savers and borrowers, providing various financial services. Trade unions aim to protect workers' interests and negotiate better working conditions and wages.
Exam Tips
Key Definitions to Remember
- Money: A medium of exchange that facilitates trade.
- Bank: A financial institution that manages deposits and loans.
- Trade Union: An organization that represents workers' interests.
Common Confusions
- Confusing the functions of commercial banks with those of central banks.
- Misunderstanding the role of trade unions in wage negotiations.
Typical Exam Questions
- What are the functions of money? Medium of exchange, measure of value, store of value, means of deferred payment.
- How do banks influence saving and borrowing? By setting interest rates and offering financial products.
- What roles do trade unions play in the economy? Negotiating wages, improving working conditions, and protecting workers' rights.
What Examiners Usually Test
- Understanding of the functions and characteristics of money.
- The role of banks in the economy.
- The impact of trade unions on wages and employment.