The Concept of Money and its evolution.

1. MONEY & BANKING
Sri Krishna Arts and Science College
Department of Commerce
Faculty:Mrs. S. Akhila

2. Attendance andSnaptalk

3. Modular Assessment Code
E(Theory –Skill Based)

4. UNIT-I
MONEY
MONEY& BANKING

5. Agenda
 Learning Objectives
 Expected Outcome
 Key terms
 Summary
 Test your knowledge (MCQ)
 Introduction to next session

6. Learning Objectives
Money : Introduction and Evolution

7. Expected Outcome
The outcome of this session is to understand the Concept
of Money and its evolution.

8. What is money?
Money
Money is any good that is widely used and accepted in transactions
involving the transfer of goods and services from one person to another.

9. According to Prof. Walker:
‘Money is what money does.’
The International Monetary Fund (IMF) has the following
definition of the term:
“A store of value, which means people can save it and use it later –
smoothing their purchases over time,” or “a unit of account, that is, it
provides a common base for prices,” and “a medium of exchange,
something that people can use to buy and sell from one another.”
Definitions:
Money

10. Evolution of money

11. Evolution of money:
 Barter system
 Commodity money
 Paper money
 Demand deposits
 E-money

12. Evolution of money:

13. Barter system:
Direct exchange of goods and services for other
goods and services
Difficulties in barter system:
 Lack of double co-incidence of wants.
 Lack of common measures of values.
 Difficulties in storing values.
 Deferred of payments / Absence of loaning.
 Indivisibility of certain goods.

14. Commodity money:
Commodity money is money whose value
comes from a commodity of which it is made.
Commodity money consists of objects that
have value in themselves as well as value in their
use as money

15. Paper money:
Paper currency that is circulated for
transaction- related purposes.
The printing of paper money is
typically regulated by a country's central
bank/treasury in order to keep the flow
of money in line with monetary policy.

16. Demand deposits:
Demand Deposit refers to a type of
account held at banks and financial
institutions that may be withdrawn at any
time by the customer.
The majority of such Demand Deposit
accounts are savings accounts.

17. E-money:
All types of money which people deal with it
electronically, far from traditional ways of payment like
banks, cheques, paper money and coins.
E-Money allow users through internet or wireless
devices to pay the charges for their purchases directly
from their bank accounts by electronical ways such as
Smart cards, Digital wallets and micropayments

18. Evolution of money:

19. Key Terms
Barter System
Commodity
Market
Paper money
Demand
deposit
E-Money
Money

20. Summary
Direct exchange of goods and services for other
goods and services
Commodity money is money whose value comes
from a commodity of which it is made.
The printing of paper money is typically regulated
by a country's central bank/treasury in order to keep
the flow of money in line with monetary policy.
Demand Deposit refers to a type of account held at
banks and financial institutions that may be withdrawn
at any time by the customer.

21. MCQ ???????

22. 1.Money is what money does?
a) Crowther
b) Robertson
c) Walker
d)Marshall
(c) Walker
2.Direct exchange of goods against goods is
called?
a) Charter
b) Money
c) Barter
d) Commodity Exchange
C) Barter
MCQ ???????

23. 3.Which of the following is not near money?
a) Paper Notes
b) Treasury bills
c) Bond
d)Bill of Exchange
(a) Paper Notes
4. Barter means:?
a) Trade through metallic money only
b) Trade of goods only excluding services
c) Trade of very low value goods
d) Trade without use of money
(d) Trade without use
of money
MCQ ???????

24. 5) Historically, the Indian rupee was a ____
coin?
a) Copper
b) Gold
c) Silver
d) Bronze
(c) Silver
MCQ ???????

25. Functions of money
Next Hour-

26. Functions of money:
Primary functions
1. Medium of exchange
2. Unit of account
Secondary functions
1. Store of value
2. Standard of dafer payments
3. Easy transfer of value

27. SKASC-Department of Commerce BPS &
CM