Management Sciences: The Role of Money, Economic Needs, and Market Exchanges

Numismatics: The study of money is called numismatics.
The Four Key Roles of Money: - A medium of exchange: Used to facilitate the trade of goods and services. - A store of value: An asset that maintains its value over time and can be retrieved later. - A unit of account: A standard numerical unit of measurement for the market value of goods, services, and other transactions. - A standard of postponed payment: A method for settling debts that allows for payments to be made in the future.

The Origin of Coins: - In the year $100\,\text{BCE}$ , the Lydian people of the Turkish region were the first to make coins. - The introduction of coins meant that traders did not have to carry sacks of gold and weighing scales. - Rulers of countries manufactured these coins by weighing the metal and adding a seal of their own, which usually featured their faces.
History of Paper Money: - China issued paper money in $930\,\text{CE}$ . - During the $19\text{th}$ Century ( $\text{Jan } 1, 1800 - \text{Dec } 31, 1900$ ), paper money was printed. - Contextual numerical data mentioned in history: $600$ (value), $423$ , $400k$ , and $20\,00$ . - Note on value systems: Historical records mention currency differentiation such as "half a than" by weight and face value.

Legal Tender: This is defined as money that is accepted as a means of payment within a specific country. All countries possess their own legal tender.
Examples of National Currencies: - British pound sterling: symbol $£$ . - Japanese Yen: symbol $¥$ . - United States dollar: symbol \. - Eurozone Euro: symbol $€$ . - South African Rand: symbol $R$ .

Functions of Electronic Banking: - Depositing money. - Withdrawing money. - Paying accounts. - Processing loans.
Banking Security and Transactions: - PIN: Personal Identification Number, which is necessary to identify the user. - EFT: Electronic Funds Transfer.
Commercial Banks in South Africa: - Standard Bank Group. - Nedbank. - FNB (First National Bank). - Investec. - Capitec Bank.
Banking Infrastructure: - ATMs (Automatic Teller Machines): Used to deposit and withdraw money $\text{24/7}$ . - E-banking: Used to manage bank accounts and make payments. This method is utilized to lower bank charges and provides easier access for overseas banking.

Definitions: - Need: Something that a person cannot live without. - Want: Something that a person desires or craves.
Categories of Needs and Wants: - Natural Needs and Wants: Includes food, clothing, love, power, sympathy, relaxation, happiness, and comfort. - Essential Needs: These must be satisfied for survival. Examples include food, housing, and health services. - Luxury Wants: These are not essential items; a person can easily survive without them.
Primary vs. Secondary Needs: - Primary Needs: These are biological and physiological requirements for survival. Examples include food, clean water, air, sleep, shelter, and clothing. - Secondary Needs: These relate to psychosocial requirements (often detailed in Maslow's research).

Developed in $1883$ (as per historical note in transcript).
Maslow's Hierarchy of Needs (Pyramid Structure from Bottom to Top): 1. Physiological: The base level of survival needs. 2. Safety: The need for security and protection. 3. Love: Social needs for belonging and affection. 4. Esteem: The need for respect and self-worth. 5. Self-Actualisation: The peak of the pyramid representing personal growth and fulfillment.

Consumer Goods: These are directly involved with the satisfaction of consumer needs and wants (e.g., bread).
Capital Goods: These are used to produce other goods and services (e.g., a delivery car).
Semi-finished Goods: These are items used in the manufacturing of other goods (e.g., steel used to make a car).
Personal Services: Services aimed at the final consumer, often carried out by professionals (e.g., doctors providing medical care).
Commercial Services: Services involved in the process of getting goods and services to the consumer (e.g., bank services provided by banks).

Producers: Businesses that make or produce goods.
Consumers: People who purchase and use goods and services.
Households: - Defined as a group of people who purchase services and live in the same residence. - Households provide factors of production to the economy, including labour, land, capital, and management skills. - Related concepts: Personal financial handling, types of employment, and investment in business.

Bartering: - Occurs when one group exchanges goods directly with another group. - Limitations: It is not always practical. Most people would eventually find what they wanted, but they might have to carry loads of heavy items. It is also difficult to work out the real value of used items.
Commodity Money: - Used when bartering is unsuccessful (e.g., if the other party does not want the specific item you have). In these cases, you offer them more widely acceptable goods.
Promissory Notes: - A promise to provide money or goods on demand. - This is a signed agreement between a person or business and an issuer. - The issuer promises to pay a specific amount to the payee on demand.