← IGCSE Computer Science Paper 1

What a currency is

The money a country or group uses to buy, sell and store value, such as the dollar or the pound.

Part of: IGCSE Computer Science 0478 — 5.2 Digital Currency — Module 1

Understanding What a currency is in IGCSE Computer Science Paper 1

What it does: Money saved in a currency like the dollar keeps its value until it is spent later, which is what storing value means. A currency is the money a country or group uses. The pound is the currency of the UK, but a receipt is just proof of a purchase. Paying means exchanging money for goods or services, such as a snack. In an exchange of goods for money, the buyer gets goods and the seller gets currency. Borrowing involves no payment.

Common mistakes: London is a city, not a currency. The UK's currency is the pound, so line 2 should be currency ← "pound". Money is a store of value. Saving 20 more should add to the savings, so it should be savings + 20, not minus.

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This module's key terms are also in a printable crossword (Modules 490–499) and word search (Modules 490–509).

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Learning
Duo
Which is an example of a currency?
The pound used in the UKA shopping receipt
Matches
currency = "bread" # a country's currency
↓
Bread is a good that is bought, not a currency. A currency is money such as the dollar or the pound.
Applying
Meanings
Term
currency
Meaning
The money a country or group uses to buy, sell and store value, such as the dollar or the pound.
Practice
currency ← "pound"
Testing
Gaps
← "dollar"
Check Answer
Spots
1country ← "UK"
2currency ← "London"

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Quick Questions

1. Which is an example of a currency?
A. The pound used in the UK ✓
B. A shopping receipt
A currency is the money a country or group uses. The pound is the currency of the UK, but a receipt is just proof of a purchase.
2. What is a currency mainly used for?
A. To make computers run faster
B. To buy, sell and store value ✓
A currency is money that people use to pay for things and to keep their value for later.
3. Which sentence describes money as a way to pay for things?
A. You keep a snack in a cupboard for a week
B. You hand over money and get a snack in return ✓
Paying means exchanging money for goods or services, such as a snack.
4. Which sentence describes money as a way to store value?
A. You save $20 now and spend it next month ✓
B. You spend $20 on a game straight away
Storing value means money keeps its worth so you can use it later.
5. Which is the currency of Japan?
A. The yen ✓
B. The euro
Each country usually has its own currency. Japan uses the yen. The euro is used by many countries in Europe.

Match the Pairs

currency → The money a country or group uses to buy, sell and store value, such as the dollar or the pound
currency = "pound" → The pound is an example of a currency that a country uses to pay for things
A currency is used to store value, so you can save it now and spend it later → savings = 50 # kept in dollars to spend later
Goods are exchanged for money in a country's currency, such as a book for dollars → book_price = 8 # dollars paid for the book
currency = "bread" # a country's currency → Bread is a good that is bought, not a currency. A currency is money such as the dollar or the pound.
currency = "only used to pay, never to save" → A currency is used to store value as well as to pay for things. It can be kept and spent later.

Key Term

currency
The money a country or group uses to buy, sell and store value, such as the dollar or the pound.

Fill in the Blanks

1. currency ← "dollar"
Hint: Type the variable name for the money a country uses to buy, sell and store value.
2. savings ← savings + 10
Hint: Type the operator that makes stored value grow when money is saved.
3. IF country = "UK" THEN currency ← "pound" ENDIF
Hint: Type the keyword that starts the action when the country matches.
4. wallet ← wallet - price
Hint: Type the operator that takes money away when you pay for something.
5. price ← 2 total ← price * 4
Hint: Type the operator that works out the money paid for several goods at the same price.

Spot the Error

Question 1
A country ← "UK"
B currency ← "London"
C OUTPUT country
D OUTPUT currency
Line B — London is a city, not a currency. The UK's currency is the pound, so line 2 should be currency ← "pound".
Question 2
A savings ← 100
B savings ← savings - 20 // save
C OUTPUT "Saved value:", savings
Line B — Money is a store of value. Saving 20 more should add to the savings, so it should be savings + 20, not minus.
Question 3
A item ← "pen"
B price ← 2
C cash ← 10
D cash ← cash + price
E OUTPUT cash
Line D — When a customer buys goods they hand money over, so their cash goes down. It should be cash - price.
Question 4
A IF country ← "UK" THEN
B currency ← "pound"
C ELSE
D currency ← "dollar"
E ENDIF
Line A — IF needs a comparison, not an assignment. To check the country, use = : IF country = "UK" THEN.
Question 5
A price ← 4
B money ← 10
C IF money <= price THEN
D OUTPUT "Buy the item"
E ENDIF
Line C — You can only buy the item if you have at least the price. The test should be money >= price, not <=.

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