This document provides an overview of capital markets and outlines classroom policies for a course. It discusses attendance, uniforms, grading systems, and the course outline. The outline identifies the importance of financial systems, differences between money and capital markets, risks managed by financial institutions, and reasons for financial sector regulation. It also introduces the instructor, Ziedwrick A. Dicar.

1. P2307:
CAPITAL
MARKET

2. 2
CLASSROOM POLICIES
ATTENDANCE TO CLASSES
WEARING OF UNIFORM
GRADING SYSTEM
COURSE OUTLINE

3. BY: ZIEDWRICK A. DICAR

4. 4
Identify the importance of financial system
to the economy.
Discuss the difference between money
market and capital market
Identify the risks managed by financial
institutions, and
Discuss the main reasons why financial
sector is highly regulated

7. What is…
7

8. 8
It is a system that allows the flow or
exchange of funds between savers
(Surplus Spending Unit, SSU) and users
(Deficit Spending Unit, DSU). It
operates at national and global levels.

9. 9
MONETARY
SYSTEM
FINANCIAL
INSTITUTIONS
FINANCIAL
MARKET
Creating Money &
Transferring Money
Accumulating Savings
& ending/Investing
Savings
Marketing Financial
Assets &Transferring
FinancialAssets

10. Monetary System
creates money which
serves as a medium of
exchange for goods and
services. It is
responsible for creating
and transferring money.
Financial Institutions
accumulates and
gathers savings to be
used for loans and
investments.
Financial Markets
serve as avenues to
facilitate financial
transactions of
financial instruments
and securities.
10

11. 11
1.Mobilize
and allocate
savings
2.Monitor
corporate
performance
3.Provide
payment and
settlement
system
4.Optimum
allocation of
risk-bearing
and reduction
5.Disseminate
price-related
information
6.Portfolio
adjustment
facility

12. 12
Financial Claims –
comprise the money
and rights to receive
money, evidenced by
financial instruments
for claims (debts and
equities)
Financial Institutions
– private or
government
organizations
Financial Markets –
institutions that
expedite
transactions in
financial claims
Government
Agencies – the
Monetary Board and
Central Banks
Laws and Policies –
Government
regulations to
supervise the
behavior of the
whole economy

13. Government Businesses Households

14. Balanced
Budget
Surplus
Saving
Position
Deficit
Position

15. Balanced Budget

16. Surplus Saving Position

17. Deficit Position

18. TRANSITION TO coinage

19. COINAGE?
19
What is…

20. 20
What is…
COINAGE?
It is the process of turning metals
into coins with a fixed weight.
In early August 2021, Chinese
archaeologists with the State University of
Zhengzhou discovered the world’s oldest
known, securely dated coin minting site.
The facility, located in Guanzhuang in
Henan Province, China, began striking
spade coins sometime around 640 BCE, one
of the first standardized forms of metal
coinage.

21. 21
What is…
COINAGE?  6th Century BCE Greek poet
Xenophanes, quoted by the
historian Herodotus, ascribed the
invention of metal coinage to
the Lydians.
 In 600 BCE, Lydia's King Alyattes
minted what is believed to be the
first official currency, the Lydian
stater.

22. 22
SEIGNIORAGE
LIMITED COINAGE
BRASSAGE
FREE COINAGE
OR GRATUITOUS
COINAGE

23. 23
What is…
FREE COINAGE?
This is a system whereby metals
be bought to the government mint
and converted into standard money
without any change for minting
except for the delay involved in the
process.

24. 24
What is…
BRASSAGE?
A charge made to an individual
under a system of free coinage for
the minting of any gold or silver
brought to the mint and usually
calculated to cover various costs

25. 25
What is…
SEIGNIORAGE? The government revenue from the
manufacture of coins calculated as the
difference between the face value and
the metal value of the coins
The government defines the size, shape,
design, and weight of coins. The
government allows people to bring their
precious metals like gold (gold bullions or
bars) to be minted.

26. 26
What is…
LIMITED COINAGE?
Government converts metals into coins
only at its option. There is no privilege of
free coinage in such a case. The
government buys precious metals in the
open market and mints them as coin
money or the standard medium of
exchange at face value higher than the
material content to facilitate trade.

27. PAPER
MONEY
Transition to…
27

28. TRANSITION TO PAPER MONEY

29. 29
The use of …
PAPER MONEY Paper bills were first used by the Chinese,
during the Tang Dynasty (A.D. 618-907)
— mostly in the form of privately issued bills
of credit or exchange notes
— used it for more than 500 years before
the practice began to catch on in Europe in
the 17th century.
It took another century or two for paper
money to spread to the rest of the world

30. PHILIPPINE
MONEY
History of…
30

31. 20YY
AUG NOV
20YY
DEC JAN FEB MAY
MAR APR JUN JUL AUG SEP OCT NOV DEC JAN FEB MAY
MAR APR
Pre-Hispanic Era
Month, 20YY
31
Spanish Era
Month, 20YY
Revolutionary Period
Month, 20YY
Investment
Month, 20YY
American Period
Month, 20YY
JapGRADING SYSTEM
anese Occupation
Month, 20YY
Philippine Republic
PHILIPPINE MONEY
• History of…

33. Pre-
Hispanic
Era
33
• Long before the Spaniards came to the Philippines, trade among the early Filipinos
and with traders from the neighboring lands like China, Java, Borneo, and Thailand
was conducted through barter. The inconvenience of the barter system led to the
adoption of a specific medium of exchange – the cowry shells. Cowries produced in
gold, jade, quartz and wood became the most common and acceptable form of
money through many centuries.
Since the Philippines is naturally rich in gold, it was used in ancient times for barter
rings, personal adornment, jewelry, and the first local form of coinage called
Piloncitos. These had a flat base that bore an embossed inscription of the letters “MA”
or “M” similar to the Javanese script of the 11th century. It is believed that this
inscription was the name by which the Philippines was known to Chinese traders
during the pre-Spanish time.

36. Declining Market
Lorem ipsum dolor sit
amet, consectetur
adipiscing elit.
Financial
Lorem ipsum dolor sit
amet, consectetur
adipiscing elit.
Trust
Lorem ipsum dolor sit
amet, consectetur
adipiscing elit.
Cost
Lorem ipsum dolor sit
amet, consectetur
adipiscing elit.
Margins
Lorem ipsum dolor sit
amet, consectetur
adipiscing elit.
36

37. SECTIONDIVIDER
LOREM IPSUM DOLOR SIT AMET,
CONSECTETUR ADIPISCING ELIT
37

38. FUNCTIONSOFMONEY
Lorem ipsum dolor sit amet, consectetur
adipiscing elit.
MEDIUM OF EXCHANGE
Lorem ipsum dolor sit amet,
consectetur adipiscing elit.
STANDARD FOR DEFERRED
PAYMENT
Lorem ipsum dolor sit amet,
consectetur adipiscing elit.
STORE OF VALUE
Lorem ipsum dolor sit amet,
consectetur adipiscing elit.
UNIT OF ACCOUNT
38

39. CustomizethisTemplate
Template Editing
Instructions and Feedback

40. Thank You!