The document summarizes the development of money and monetary systems. It discusses how barter systems led to the development of money as a medium of exchange. It then outlines the key aspects of a money economy, including the roles of households, firms, and transactions between the two. The document also briefly discusses paper money, coins, unemployment, inflation, and economic growth in the context of a monetary system.

1. Development of the
Circulation of Money

2. During the ancient time….
• Barter system
- Goods and services are traded in
exchange for other good.

3. Money Economy
Money economy
• Where goods and services are paid
in currency or money
Money
• medium of exchange
• is commonly accepted by a group
of people for the exchange of
goods, services, or resources.
Every country has its own system of
coins and paper money.

4. Money Economy
Paper money
is invented in To commemorate the Centennial of
China. Independence from more than 300
years of Spanish colonial rule in
1998, the government of the
Philippines wanted to do something
very special. It issued the world's
largest banknote (14" x 8 1/2"),
The Lydians beating the previous record: China
Ming Dynasty 1 Kuan (8 3/4" x 13
became the first 1/4").
in the Western
world to make
coins.

5. Transactions by Households and Firms
HOUSEHOLDS FIRMS
Owns factors of Use factors of
production, including production supplied
labor, which they by households to
supply to firms produce goods and
Includes services
Provide
the entire Receive incomes Pay households for consumers
population from firms in use of factors of
with goods
of society exchange for production
supplying factors of and
production services
Spend on goods and Sell goods and
services produced by services to
firms households

7. Exists when people who are
willing to work cannot find jobs

8. Firms hire productive services from
households. They do this to make
profit by selling the goods and
services they produce to households
firms cannot sell all the goods they are producing
They cut back on production and reduce their work force
People lose their jobs and become unemployed

9. Inflation
• is defined as an increase in the general
price level

10. Growth
• Occurs when unemployed resources are put
back to work and when there is increased flow
of goods and services from firms to
households and increased flow
of income to households

11. Entrepreneurship on the context of
small and medium-scale industries and
its role in economic growth
Micro Less than- 50,000php
Cottage 50,001php- 500,000php
Small 500,001php- 5,000,000php
Medium 5,000,001php- 20,000,000php

12. Various Business Opportunities in the
Community
Business opportunities are everywhere as long as
there are people with money, and they are willing
to satisfy their needs.
Real entrepreneurs can see more business
opportunities because they are creative,
resourceful and risk-takers.
They create opportunities instead of waiting for
opportunities to come

15. Factors /resources to be evaluated
for higher probability of success:
Markets
•Number of prospective buyers
•Presence of competitors
•Prices
•Quality of goods and services

16. Individual Interests
•Business interests of individuals vary
•Interests should match opportunities

17. Capital
• Money is very important in putting up a
business.
• The availability of funds
should fit the type of
business to be organized.

18. Skills
• The entrepreneur should have the proper
skills in the business he is going to undertake

19. Suppliers of Inputs
• It is important that there are steady suppliers
of raw materials and other inputs of the
business.
• If there is no materials to be used in
production, then nothing will be produced

20. Manpower
• People are the most important resources.
• The success of any business depends on the
efficiency of its employees

21. Technology
• Tastes and preferences of consumers are not
permanent. These are heavily influenced by
innovations.