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Questions and Answers
What is one function of money that allows it to be used for future transactions?
What is one function of money that allows it to be used for future transactions?
- As a standard unit of value
- As a store of value (correct)
- As a standard of deferred payment
- As a medium of exchange
Which characteristic of good money ensures that it can be easily recognized and cannot be easily forged?
Which characteristic of good money ensures that it can be easily recognized and cannot be easily forged?
- Durability
- Cognizability (correct)
- Divisibility
- Portability
Which form of money is typically made from precious metals or other valuable commodities?
Which form of money is typically made from precious metals or other valuable commodities?
- Checks
- Paper money
- Commodity money (correct)
- Currency
What characteristic of good money allows it to be exchanged for smaller parts or recombined into larger denominations?
What characteristic of good money allows it to be exchanged for smaller parts or recombined into larger denominations?
Which of the following is NOT a characteristic of good money?
Which of the following is NOT a characteristic of good money?
What type of money is specifically referenced as being usable only within its country of origin?
What type of money is specifically referenced as being usable only within its country of origin?
In the context of a check, who is the party that orders the bank to pay a specified amount?
In the context of a check, who is the party that orders the bank to pay a specified amount?
Which characteristic of good money emphasizes its ability to maintain value over time without major fluctuations?
Which characteristic of good money emphasizes its ability to maintain value over time without major fluctuations?
What feature allows a user to see a rolling-bar effect when tilting the banknote?
What feature allows a user to see a rolling-bar effect when tilting the banknote?
Which feature is primarily intended to aid the elderly and visually impaired?
Which feature is primarily intended to aid the elderly and visually impaired?
What can be seen through the Sampaguita Clear Window?
What can be seen through the Sampaguita Clear Window?
Where can the vertical band with denomination value and 'BSP' text be found?
Where can the vertical band with denomination value and 'BSP' text be found?
What effect occurs when the banknote is tilted, related to the Republic of the Philippines Seal?
What effect occurs when the banknote is tilted, related to the Republic of the Philippines Seal?
What is revealed when the banknote is viewed from different angles regarding the blue iridescent figure?
What is revealed when the banknote is viewed from different angles regarding the blue iridescent figure?
Which of the following features can be found as a part of the banknote's security features?
Which of the following features can be found as a part of the banknote's security features?
What do the asymmetric digits in the serial numbers indicate?
What do the asymmetric digits in the serial numbers indicate?
What is the primary role of financial intermediaries?
What is the primary role of financial intermediaries?
Which of the following describes compound interest?
Which of the following describes compound interest?
Which statement about simple interest is true?
Which statement about simple interest is true?
What is meant by economies of scale in the context of financial intermediaries?
What is meant by economies of scale in the context of financial intermediaries?
What does interest typically indicate in a financial transaction?
What does interest typically indicate in a financial transaction?
What benefit do savers gain by pooling their funds through financial intermediaries?
What benefit do savers gain by pooling their funds through financial intermediaries?
Which of the following is not a function of commercial banks?
Which of the following is not a function of commercial banks?
How are interest rates generally structured?
How are interest rates generally structured?
What is the term for the stage of economic development where goods and services are directly exchanged for other goods and services?
What is the term for the stage of economic development where goods and services are directly exchanged for other goods and services?
Which of the following is NOT a difficulty associated with barter?
Which of the following is NOT a difficulty associated with barter?
What is the source of money's purchasing power in a modern economy?
What is the source of money's purchasing power in a modern economy?
Which of the following is considered legal tender money in the Philippines?
Which of the following is considered legal tender money in the Philippines?
What is the main characteristic of 'Credit Money'?
What is the main characteristic of 'Credit Money'?
Which of the following security features of a Philippine banknote can be felt by touch?
Which of the following security features of a Philippine banknote can be felt by touch?
What is the term for the ability of money to be exchanged for goods and services?
What is the term for the ability of money to be exchanged for goods and services?
What is the origin of the word "money"?
What is the origin of the word "money"?
Flashcards
Polymer Substrate
Polymer Substrate
A smooth, continuous sheet used for banknotes with transparent areas.
Enhanced Value Panel
Enhanced Value Panel
A feature that creates a rolling-bar effect when tilted from left to right.
Sampaguita Clear Window
Sampaguita Clear Window
A transparent window with an image of a Sampaguita flower and the text 'BSP'.
Tactile Dots
Tactile Dots
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Shadow Thread
Shadow Thread
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Metallic Features
Metallic Features
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Blue Iridescent Figure
Blue Iridescent Figure
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Embossed Prints
Embossed Prints
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Finance
Finance
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Financial Intermediaries
Financial Intermediaries
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Loan Provision
Loan Provision
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Pooling Investments
Pooling Investments
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Interest
Interest
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Interest Rate
Interest Rate
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Simple Interest
Simple Interest
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Compound Interest
Compound Interest
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Functions of Money
Functions of Money
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Medium of Exchange
Medium of Exchange
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Standard Unit of Value
Standard Unit of Value
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Store of Value
Store of Value
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Characteristics of Good Money
Characteristics of Good Money
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Portability
Portability
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Commodity Money
Commodity Money
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Check
Check
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Direct Appropriation Stage
Direct Appropriation Stage
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Barter Stage
Barter Stage
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Credit Money
Credit Money
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Difficulties of Barter
Difficulties of Barter
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Definition of Money
Definition of Money
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Purchasing Power
Purchasing Power
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Legal Tender Money
Legal Tender Money
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Study Notes
Money, Credit, and Banking System
- Money originates from the Greek word "Moneta"
- Money is any item or medium of exchange that represents value
- Anything widely accepted for transactions within a region
- Money functions without needing the person's credit rating
Stages in Exchange Development
- Direct Appropriation Stage: Early humans fulfilled their needs through natural resources
- Barter/Direct Stage: Goods and services were directly exchanged
- Commodity Money Stage: Certain goods gained widespread acceptance as a medium of exchange due to usefulness, scarcity, and desirability.
- Credit Money Stage: Money's value surpasses its material value
Difficulties of Barter
- Items may not have equal value
- It lacks a double coincidence of wants
- It lacks a store of value
- It is often difficult to divide and inconvenient for use
Types of Money
- Non-Metallic: Examples include rice, corn, wheat, salt, and cattle
- Metallic: Examples include gold, silver, and copper
- Intrinsic Value: The perceived value of the material is equal to the monetary value
Purchasing Power of Money
- Buying power is the amount of goods and services a certain amount of money can buy.
- Rising prices reduce buying power, while falling prices increase buying power.
- Legal tender money is an authorized form of payment legally sanctioned to use
What is Legal Tender Money?
- Any form of money sanctioned by law for payment of any debts or transactions
What are Considered Legal Tender Money in the Philippines?
- Notes and coins issued by the Bangko Sentral ng Pilipinas (BSP)
Security Features of Philippine Banknotes
- Multiple security features are integrated for authenticity.
- Features such as serial numbers, shadow thread, clear windows, metallic features, blue iridescent figures, tactile dots, embossed prints, enhanced value panels, and sampaguita windows assist in detecting counterfeit notes.
Definition of Money
- Money is used for trading and fulfilling obligations.
- Money is characterized by portability, stability, and broad acceptance.
Functions of Money
- Medium of Exchange: Facilitates transactions by being widely accepted
- Standard Unit of Value: Measures the relative value of goods and services
- Store of Value: Holds purchasing power over time
- Standard of Deferred Payment: Used for settling debts in the future
Financial Intermediaries
- Facilitate transactions by acting as a middleman.
- Help direct funds from savers to borrowers by handling various functions such as asset storage, loan provision, investments, and risk management.
Forms of Money
- Commodity Money: Items with intrinsic value, like precious metals or other valuable commodities
- Currency: Paper money and coins issued by a central bank
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Description
Explore the evolution of money from barter systems to credit. This quiz covers the various stages of exchange development, the difficulties of barter, and different types of money. Test your knowledge on the fundamental concepts that shape modern banking and finance.
