ZIMSEC O Level · Commerce · Form 3, Form 4
Money
Functions: medium of exchange, measure of value, store of value, standard for deferred payment. Qualities: acceptability, durability, portability, divisibility, scarcity.
Zimbabwe uses a multi-currency system; the Zimbabwe Gold (ZiG) was introduced in 2024 alongside the US dollar.
The Reserve Bank of Zimbabwe (central bank)
Issues currency, is banker to the government and to commercial banks, controls money supply and interest rates (monetary policy), manages foreign reserves, and supervises banks.
Commercial banks
Services: current and savings accounts, loans and overdrafts, foreign exchange, cards, internet and mobile banking, safe custody, financial advice.
Methods of payment
Cash, cheques, debit and credit cards, bank transfers (RTGS and EFT), standing orders and direct debits, point-of-sale (swipe) payments and mobile money (EcoCash, OneMoney, InnBucks).
Other financial institutions
Building societies (mortgages), microfinance institutions, savings clubs (rounds/mukando), POSB.
Check yourself
- State three functions of money.
- Give two functions of the Reserve Bank of Zimbabwe.
- Give one advantage and one disadvantage of mobile money.
Show answers
- Any three: medium of exchange, measure of value, store of value, standard for deferred payment.
- Any two: issues currency, banker to government, banker to banks, controls money supply, supervises banks.
- Advantage: convenient/available in rural areas; disadvantage: transaction charges/network failures/fraud.
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