Green and Yellow Illustrative Financial Technology Presentation PDF

Topic #1: Money Money and the banking system Overview Origin of money 01 Characteristics of money 02 Function of money 03 Types of money 04 Banking and money supply 05 importance of introducing 06 money  1. Barter System: Early trade...

Topic #1: Money Money and the banking system Overview Origin of money 01 Characteristics of money 02 Function of money 03 Types of money 04 Banking and money supply 05 importance of introducing 06 money  1. Barter System: Early trade was based on direct exchanges, limited by the need for mutual Origin of wants. 2. Commodity Money: Items like shells and grains with intrinsic value were used as early money currency. 3. Metal Coins: Metals (gold, silver) were shaped into coins, standardized by governments for trade. 4. Paper Money: Originated in China to avoid carrying heavy coins; spread globally. 5. Banknotes and Banking: Banks issued receipts for stored gold, leading to paper currency. 6. Fiat Money: Modern money isn’t backed by commodities; its value is based on trust. 7. Digital and Cryptocurrencies: Recent forms include digital currency and decentralized cryptocurrencies. Characteristics - Durability: Money should last over time and withstand repeated use. - Portability: Money should be easy to carry and transfer. - Divisibility: Money can be divided into smaller units to facilitate various transaction sizes. - Uniformity: Each unit of money should be identical to ensure consistency in value. - Limited Supply: Money should be available in limited amounts to maintain its value. - Acceptability: Money must be widely accepted as a medium of exchange.  Functions of Money - Medium of Exchange: Simplifies transactions, replacing barter. -Unit of Account: Standard measurement for pricing and comparing value. - Store of Value: Retains value over time for saving purposes. - Standard of Deferred Payment: Enables borrowing and repayment over time.  Medium of Exchange: Money lets people buy and sell Primary things without needing to trade goods directly. Functions Measure of Value: Money gives a clear value to goods and services, making prices easy to understand. Functions of Money Secondary Basis of Credit Creation: Money allows banks Functions to create loans, supporting growth for people and businesses. Store of Value: Money can be saved and Employing Factor Inputs: Money helps keeps its value over time, making it good for Contingent decide how resources like labor and saving. Functions materials are used in production. Transfer of Value: Money can be easily sent Creation and Redistribution of National or received between people or places, Income: Money helps spread income helping with trade and business. throughout the economy, like through wages and taxes. Standard of Deferred Payments: Money Liquidity: Money is easily available in cash allows people to make payments in the form, making it quick to access when needed future, like with loans or credit. types of money Commodity Fiat Fiduciary Commercial Bank Banking and the money supply Integrity Every time a dollar is deposited into a bank Lorem ipsum dolor sit amet, consectetur account, a bank's total reserves increases. The adipiscing elit. Aliquam semper ipsum urna, nec cursus dolor dictum nec. Donec bank will keep some of it on hand as required luctus mauris quis cursus. reserves, but it will loan the excess reserves out. When that loan is made, it increases the money supply. Innovation Creativity  Facilitates Economic Activity: Enables efficient buying, selling, and trading of goods and services. Importance Unit of Account: Helps measure and compare value, track wealth, and make financial decisions. of money Store of Value: Allows people to save and plan for future needs, providing stability and security. Supports International Trade: Enables global economic interactions and collaborations. Foundation for Banking and Finance: Underpins lending, investment, and economic stability. Enables Economic Policy: Allows governments and central banks to promote stability and growth.  cindy The integration of technology in financial services is reshaping the industry, offering new opportunities and challenges. As fintech continues to develop, these challenges need to be addressed while harnessing its benefits to create a more inclusive and efficient financial ecosystem.  “With fintech, financial transactions become faster, transparent and cost effective” THANK YOU