PBON02B - Money, Credit, and Banking

made by one and only TJ POGI

what is MONEY?

Anything authorized by law to be generally accepted as legal tender, as a medium of exchange, and a standard of value in payment of goods and services without reference to the general standing of the person who offers it.

what is the ORIGIN OF MONEY?

• LATIN – MONETA

• OLD FRENCH – MONOIE

• MODERN FRENCH - MONNAIE

• MONERE

what is THE BARTER SYSTEM?

Barter is the exchange of things for other things -  goods for goods, services for services and the like, without the use of money.

what is COMMODITY MONEY?

Commodities are acceptable to everyone engaged in trading. They had values assigned by those using them, but they also had intrinsic value (the value of goods because of their usefulness).

what are the FORMS OF MONEY?

• Coinage

• Plastic Money (Cards)

• Paper Money

• Check

• Plastic Money (Polymer)

• Electronic Banking

what is COINAGE?

The conversion of metals into coins. Metals are made into coins of a fixed weight.

what is PAPER MONEY?

Money that is made out of paper. The use of this alleviated the problem of scarcity of the precious metal used in minting coins.

what is PLASTIC MONEY (POLYMER)?

Plastic money is actual cash made or super resistant polymer film (instead of paper).

what is PLASTIC MONEY (CARD)?

Hard plastic cards used in everyday exchange transactions in place of actual bank notes.

what is a CHECK?

It is a written order to a bank (drawee), the person, who issues the check (maker of drawer) to pay someone whose name is written on the face of the check (payee) a certain amount of money on demand (upon presentation/immediately) or at a future date (post-dated check).

what is ELECTRONIC BANKING?

E-banking has proven to be a boost in generating more deposits and efficiently serving its clientele.

what are the KINDS OF CHECKS?

• Personal Check

• Cashier’s Check or Manager’s Check

• Business Check

• Certified Check

• Crossed Check

• Bounced Check

• Stale Check

what is a PERSONAL CHECK?

It is issued by a person to be drawn against their own current/ checking account in a bank.

what is a CASHIER’S CHECK or MANAGER’S CHECK?

It is issued by the bank against its own account, ensuring the availability of funds.  It is purchased with a fee from a bank that issues the check.

what is a BUSINESS CHECK?

It is issued by companies/ businesses drawn on the issuers bank checking or current account.

what is a CERTIFIED CHECK?

It is issued by the bank certifying that the account of the person issuing it has available funds.

what is a CROSSED CHECK?

It is any check that is crossed with two parallel lines, either across the whole check or through the top left-hand corner of the check.

what is a BOUNCED CHECK?

It is slang for a check that cannot be processed because the account holder has nonsufficient funds (NSF).

what is a STALE CHECK?

It is a check that is presented to be cashed or deposited at a bank six months or more after the date it was written.

what are the CHARACTERISTICS OF MONEY?

• Utility

• Portability

• Generally Acceptability

• Uniformity

• Malleability

• Durability

• Scarcity

• Divisibility

what is UTLITY (in terms of money)?

It means money should be useful.

what is PORTABILITY (in terms of money)?

It is when the commodity should be easily carried or transported from place to place.

what is GENERAL ACCEPTABILITY (in terms of money)?

It would allow the object to transfer from one hand to another without question of its origin.

what is UNIFORMITY (in terms of money)?

It should be the same size, design, shapes, and metals to avoid confusion.

what is MALLEABILITY (in terms of money)?

This means that the commodity used as money could be melted down and shaped into different forms as well as imprinted with any desired design.

what is DURABILITY (in terms of money)?

The commodity chosen as money would have to withstand normal wear and tear.

what is SCARCITY (in terms of money)?

It means money should be something valuable because over abundance makes it worthless.

what is DIVISIBILITY (in terms of money)?

It refers to the quality of being broken down into smaller units.

What are the PARTS OF MONEY?

1. Embossed Prints
2. Serial Number
3. Security Fibers
4. Watermark
5. See-through mark
6. Concealed
7. Security Thread
8. Optically Variable Device

what is CREDIT?

It is a contract agreement in which a borrower receives a sum of money or something of value and repays the lender at a later date, generally with interest.

what is BANKING?

A bank is a financial institution licensed to receive deposits and make loans. Banks may also provide financial services such as wealth management, currency exchange, and safe deposit boxes.

how does banking WORK?