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MONEY AND ITS

SIGNIFICANCE IN TECONOMY

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How is money significant ineconomy?

Money is absolutely necessary to thdevelopment of commerce and tradIt could not function without the use money.

It stimulates production in creation owealth and economic goods.

It increases standard of living

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What is Monetary Standa

Monetary Standard is a particular kind of standard money used in thmonetary system of a country andwhich other kinds of money are re

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gn cance o one aryStandard

It serves as the domestic requiremthe country, that is, filling its interneeds.

It serves as the requirement ofinternational trade.

di i f i f

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Conditions for SatisfactoryMonetary System

Media of payments must exist in fand denominations that provideconvenience for the numerous paythat have to be made within the c

All these forms of money must cirand at parity with one another.

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Money Supply Measurem

Money in circulation Savings and demand deposits

Money market funds

Short term repurchase agreement

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Value of Money

The amount of goods and services Purchasing power

Revealed by general prices.

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Functions of Money

Money as the medium of exchang Money as a measure of standard v

Money as a store of value

Savings Investing

Money as a means of debt payme

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Durability It is intended to be durable to cover

periods of time.

DivisibilityDivided into fraction, each fraction i

centavo.

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MalleabilityMust be capable of being stamped w

proper design.

ElasticityThe volume of money in circulation

be easily increased or reduced inaccordance with the need as well as

dictate of the economy.

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ConvertibilityConverted into foreign money or cu

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Recognizing our Money

Steps in recognizing genuin

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Steps in recognizing genuinBSP notes

Paper It is rough

Includes (watermark, security fiberssecurity threads, and iridescent ban

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Watermark

It is the silhouette of the portraitappearing on the face of the note.

The contours of the features of thesilhouette can be felt by running tfingers over the design on relativenotes.

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Security Fibers

Embedded red and blue visible fibscattered at random on both surfaa genuine note and can be readilypicked off by means of any pointe

instrument.

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Embedded Security Threa

It is a special thread vertically impoff center of the note during papemanufacturer.

This can be easily seen when the viewed against the light.

It appears as a broken line for 5s,ad 20s and others

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Window Security Thread

A wide glistening gold vertical strithe numerical value printed in ser