A detailed description forms of money and types of money. money in form of plastic currency and liquid money

1. NITISH MONINGI

2. SOME OF THE FORMS OF MONEY.
Shells
Live stock
Precious stones
Skulls
Pearls
Wheat
Feathers
Brass
Silver
Gold
Paper money

3. MONEY, in and of itself, is nothing. It
can be a shell, a metal coin, or a piece
of paper with a historic image on it, but
the value that people place on it has
nothing to do with the physical value of
the money. Money derives its value by
being a medium of exchange, a unit of
measurement and a storehouse for
wealth. Money allows people to trade
goods and services indirectly,
understand the price of goods and
gives us a way to save for larger
purchases in the future.
WHAT IS MONEY?

4. 1. Commodity Money
It is the simplest kind of money which is used in barter system where the valuable resources
fulfill the functions of money. The value of this kind of money comes from the value of
resource used for the purpose. It is only limited by the scarcity of the resources
Ex : gold coins , beads , shells, pearls, stones, tea, sugar, metal
2. Fiat Money
The word fiat means the ”command of the sovereign”. Fiat currency is the kind of money
which don’t have any intrinsic value and it can’t converted into valuable resource.
Ex : Paper money, Coins
3. Fiduciary Money
Today’s monetary system is highly fiduciary. Whenever, any bank assures the customers to
pay in different types of money and when the customer can sell the promise or transfer it to
somebody else, it is called the fiduciary money. Fiduciary money is generally paid in gold,
silver or paper money.
4.Commercial Bank Money
Commercial Bank money or demand deposits are claims against financial institution that can
be used for the purchase of goods and services. A demand deposit account is an account
from which funds can be withdrawn at any time by cheque or cash withdrawal without giving
the bank or financial institution any prior notice.
TYPES OF MONEY

5. The main functions of money are :
1. It is a medium of exchange.
2. It gives purchasing power to consumer to
pay for goods and services.
3. It is a unit of account.
4. It is a unit measure of value.
5. It is a standard of deferred payment.
6. It is a store of value.

6. Money enables a consumer to maximize his satisfaction.
It measures the intensity of desire of consumer.
It facilitates production by stimulating saving &
investment.
It gives mobility to capital & helps in capital formation.
It enables to harness various factors of production,
so that the entrepreneurs is able to maximize profit.
It facilitates exchange & helps in both trade and
commerce both national & international.
Role and importance of money in modern economy

7. MONEY LAUNDERING
Money laundering means, it is a process of taking the
proceeds of criminal activities & making them appear legal
IT INVOLVES 3 STEPS
PLACEMENT
LAYERING
INTEGRATION

8. CIRCULAR FLOW OF MONEY IN ECONOMY

9. 1.Make a Budget
A. For one month, keep track of all your expenses.
B. After the first month, take stock of what you spent
C. Now, write down your actual budget
D. Keep track of your budget over time
2. Spend Your Money Successfully
A. When you can borrow, don't buy
B. If you have the money, pay a high down payment on your mortgage.
C. Understand that owning a credit card may be very important for establishing credit.
D. Spend what you have, not what you hope to make.
3.Make Smart Investments
. A. Familiarize yourself with different investment options.
B. Take advantage of any retirement plans that your employers offer
MANAGING YOUR MONEY

10. C. If you're going to put money into the stock market, don't gamble with it.
D. Have good insurance coverage.
E. Think about getting a Roth IRA for retirement.
4. Build Your Savings
A. Start an emergency fund.
B. When you've started saving for retirement and put money in your emergency
fund, put away three to six months' worth of expenses
C. Begin paying off your debt once you're established
D. Begin really ramping up for retirement.