The document provides an overview of money and banking concepts including the functions of money, types of money, and properties of money. It also summarizes the role of the Federal Reserve in regulating the US money supply through tools like open market operations, changing reserve requirements, and adjusting interest rates. The Federal Reserve aims to promote price stability and maximum employment through its monetary policy decisions.
Money& Monetary Policy Defined (Philippine Setting)Camille Miranda
This is my report on our subject Macro Economics. This is not a professionally made powerpoint but I hope it can help especially to the Filipino students.
Money& Monetary Policy Defined (Philippine Setting)Camille Miranda
This is my report on our subject Macro Economics. This is not a professionally made powerpoint but I hope it can help especially to the Filipino students.
Kinds of money, functions of money, Supply of money along with inflation. Banking with commercial functions of banking , Central Bank and its functions have been presented in the slides.
TUI University 1Money and Monetary PolicyMacroeconomic.docxwillcoxjanay
TUI University 1
Money and Monetary Policy
Macroeconomics
ECO202
TUI University
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•Forms and Types of Money:
People invented money to overcome the limitations
of barter.
Early money was “commodity money.”
Commodity monies are items used as money that
also have intrinsic use value.
People invented fiat money and credit money to
overcome the limitations of commodity money.
Why do fiat money and credit money have value?
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Functions of Money:
Money regardless of form performs three
important functions in the economy.
Money serves as:
1. Medium of Exchange.
2. Store of Value.
3. Standard of Value.
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1. Medium of Exchange:
Barter requires the double coincidence of wants.
Money lowers the transactions costs of exchange
by serving as the means of payment.
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2. Store of Value:
Money is a convenient way to store part of one’s
wealth.
Any asset has three important features.
An advantage to money is its liquidity, but liquidity
has an opportunity cost.
During inflationary times it is dangerous to store
wealth in the form of money.
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Risk and Return:
The rate of return on an asset is the total dollar
gain from an asset measured as a % from the
beginning of the period.
The return combines any income with a capital
gain or loss.
Risk measures the variability of returns.
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3. Standard of Value:
Unit of account.
Money is a standard of value for quoting prices.
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M1:
Narrow transactions money supply is
called “M1.”
M1= currency + demand deposits
(checking accounts) + traveler's checks.
M1 is currently around 1.1 Trillion $ and
often falling.
About 60% of M1 is demand deposits and
a about 40% is currency.
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M2:
Broad money.
M2 includes M1 + liquid assets.
M2 = M1 + smaller savings accounts + small time
deposit accounts + money market accounts + other
near monies.
M2 is about 4.5 T $.
The relationship between M2 and the economy broke
down in the early 1990’s as people pulled money out
of savings accounts and put it into financial
investments outside of banks that are not included in
the money supply.
M2 is no longer a target variable of the Fed.
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CURRENCY IN THE ECONOMY
$372 billion of currency amounts to over $1,430 for every
man, woman and child in the U.S.
Most of the currency in the official statistics is not used in
ordinary commerce in the U.S.
Much is held abroad by wealthy people
Some circulates in other countries along with local
currencies
Currency is also used in illegal transactions
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BANKS AS FINANCIAL
INTERMEDIARIES
Help bring savers and investors together
By using expertise and powers of diversification, financial
intermediaries reduce risk to savers and allow investors
to obtain funds on better terms
A typical commercial bank accepts funds from savers in the ...
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
3. Did You Know That …
Money
◦ Any medium that is universally
accepted in an economy both by
sellers of goods and services as
payment for those goods and
services and by creditors as
payment for debts
5. The Functions of Money
The functions of
money
◦ Medium of
exchange
◦ Unit of accounting
◦ Store of value
(purchasing
power)
◦ Standard of
deferred payment
6. The Functions of Money
(cont'd)
Medium of Exchange
◦ Any item that sellers will accept as
payment
◦ Money facilitates exchange by
reducing transaction costs associated
with means-of-payment uncertainty
Permits specialization, facilitates efficiencies
Avoids need for Barter!
Keeps Fenick from teaching to trade for
Donuts!
7. The Functions of Money
(cont'd)
Barter
◦ The direct exchange of goods and
services for other goods and
services without the use of money
◦ Simply a direct exchange requires a
double coincidence of wants
◦ I want a sandwich, I need to find
someone that wants to learn
Economics!
8. The Functions of Money
(cont'd)
Unit of Accounting
◦ A measure by which prices are
expressed
◦ The common denominator of the
price system
◦ A central property of money
9. The Functions of Money
(cont'd)
Store of Value
◦ The ability to hold value over time
◦ A necessary property of money
◦ Money allows you to transfer value
(wealth) into the future
10. The Functions of Money
(cont'd)
Standard of Deferred Payment
◦ A property of an item that makes it
desirable for use as a means of
settling debts maturing in the
future
◦ An essential property of money
11. Properties of Money
Liquidity
◦ The degree to which an asset can
be acquired or disposed of without
much danger of any intervening
loss in nominal value and with small
transaction costs
◦ Money is the most liquid asset
13. Properties of Money (cont’d)
Question
◦ What is the cost of holding money
(its opportunity cost)?
Answer
◦ It is the alternative interest yield
obtainable by holding some other
asset
14. Properties of Money (cont’d)
Questions
◦ What backs money?
◦ Is it gold, silver, or the federal
government?
Answer
◦ Your confidence
15. Properties of Money (cont’d)
Transactions Deposits
◦ Checkable and debitable account
balances in commercial banks and
other types of financial institutions,
such as credit unions and mutual
savings banks
◦ Any accounts in financial institutions
on which you can easily transmit
debit-card and check payments
without many restrictions
16. Properties of Money (cont’d)
Fiduciary Monetary System
◦ A system in which currency is
issued by the government and its
value rests on the public’s
confidence that it can be exchanged
for goods and services
◦ The Latin fiducia means “trust” or
“confidence”
17. Properties of Money (cont’d)
Currency and transactions
deposits are money because of
their
◦ Acceptability
◦ Predictability of value
18. Defining Money
Money is important
◦ Changes in the rate at which the
money supply increases or decreases
affect important economic variables
(at least in the short run) such as
inflation, interest rates, employment,
and the level of real GDP
Money Supply
◦ The amount of money in circulation
19. Financial Intermediation and
Banks
Most nations have a banking
system that encompasses two
types of institutions
1. One type consists of private
banking institutions
2. The other type of institution is a
central bank
21. Learning Goal
Describe the basic structure and
functions of the Federal Reserve
System
22. The Federal Reserve (AKA – The Fed)
The central bank of the United States of
America.
◦ Created by Congress in 1913
23. Mission Statement & The Dual
Mandate
The Federal Reserve System is the
central bank of the United States. It was
founded by Congress in 1913 to provide
the nation with a safer, more flexible, and
more stable monetary and financial
system. Written into the Federal Reserve
Act, is the mission “To create a healthy
growing economy with high employment and
price stability.”
24. The Fed
The “Fed” is a
system/network of
banks.
Responsible for
Monetary
Policy.
25. Cont.
Monetary Policy – Changing the
growth of money supply in circulation.
26. Federal Open Market Committee
Board of Governors, head of NY Fed Bank,
and 4 rotating heads of the other 11 district
banks.
◦ Meet 8 times a year to set MONETARY
POLICY
◦ Extremely important decision making body.
27. Banking System
12 District Banks – 25 branch banks
underneath it.
◦ All national banks must become members of the
Federal Reserve System.
28.
29. Loose Money Policy “Expansionary”
Credit is abundant and inexpensive to
obtain.
◦ Encourages economic growth
30. Tight Money Policy “Contractionary”
Credit is in short supply and expensive to
obtain.
◦ Used to control inflation
◦ Think money when money is “tight” it is harder to
get, not as much available.
31.
32. Fractional Reserve Banking
Only a
fraction of
bank
deposits
must be
kept on
hand or in
reserves
the rest
can be lent
out.
33. Reserve Requirements
A requirement by the Fed – % of Money
that banks must keep on reserve from
deposits.
◦ Example – Jack deposits $1000 into a checking
account. The reserve requirement is 10%. The
bank must therefore hold $100 and may loan out
the remaining $900.
36. Learning Goal
Describe what tools the Federal Reserve
uses to run a smooth economy.
37. The Federal Reserve
The main goal of the Federal Reserve is to
keep the money supply growing steadily and
the economy running smoothly
38. Tool #1 – Changing Reserve
Requirements
Reserve Requirements – The % of money
that banks must hold from a deposit.
◦ Increase Requirements – Less money available
to lend out
◦ Decrease Requirements – More money
available to lend out
39.
40. #2 – Discount Rate
Banks can borrow money from the Fed
(to meet reserve requirements).
◦ The interest charged by The Fed on these
loans is the Discount Rate
41. Cont.
Prime Rate – Interest rate banks charge
its best business customers. Banks pass
on discount rate changes to customers.
42. Cont.
Decrease Interest Rate = Loans become
cheaper to obtain = Loans INCREASE in
Quantity Demanded
Increase interest rates – Loans become
more expensive – discourages borrowing
43. #3 – Open Market Operations
Buying and selling government securities
(Most common tool Fed uses to control
money supply
◦ Fed buys securities it is increasing money
supply
◦ Fed sells securities it is decreasing money
supply
44. Federal Funds Rate
Interest rate that banks charge each
other for short-term loans.
Banks that cannot meet reserve
requirements must borrow or pay a
penalty.
45. Cont.
Fed tries to indirectly change this rate
through open market operations.
46. Delays in Effects of Monetary
Supply
Full effects can take months, sometimes
up to a year
47. Criticisms of Fed Policies
Fed has increased money supply during times
of inflation (creating worse inflation)
Fed has decreased money supply during
recessions (thereby making the recession
worse)
48. Cont.
Some Recommend – Money supply increased
at same rate each year (no monetary policy)
Gov’t (spending and taxation) also has a
dramatic affect on the economy.