The document discusses the evolution of money and its classification. It begins by outlining some difficulties with barter systems, including the lack of a common measure of value and difficulty making deferred payments. It then describes the stages in the evolution of money, starting with commodities and progressing to metallic money, paper money, and credit money. The document further classifies money based on monetary system criteria such as legal tender status, and distinguishes between money of account and actual money used to settle debts.

1. DIFFICULTIES OF BARTER
 Lack of double coincidence of wants
 Lack of common measure of value
 Indivisibility of certain goods
 Difficulty in storing value
 Difficulty in making deferred payments
 Lack of specialisation
EVOLUTION OF MONEY

2. STAGES IN THE EVOLUTION OF MONEY
 COMMODITY




MONEY
METALLIC
MONEY
PAPER MONEY
CREDIT
MONEY
NEAR MONEY

3. MONEY
 The word "money" is believed to originate from a
temple of Hera, located on Capitoline, one of
Rome's seven hills. In the ancient world Hera was
often associated with money. The temple of Juno
Moneta at Rome was the place where the mint of
Ancient Rome was located.
 In the Western world, a prevalent term for coinmoney has been specie, stemming from Latin in
specie, meaning 'in kind'.

4. CLASSIFICATION OF MONEY
 MONETARY SYSTEM CRITERION
 ACCEPTABLITY CRITERION
 MONEY OF ACCOUNT AND MONEY PROPER

5. MONETARY SYSTEM CRITERION
 METALLIC MONEY
 Standard Money (intrinsic value > face value)
 Token Money (intrinsic value < face value)
 Subsidiary Money
 PAPER MONEY
 Representative paper money
 Convertible paper money
 Inconvertible paper money
 Fiat money
 CREDIT MONEY

6. ACCEPTABLITY CRITERION
 Legal tender money
Limited legal tender money
Unlimited legal tender money
 Non-legal tender money

7. MONEY OF ACCOUNT AND
MONEY PROPER
 Money of account is that in which Debts and Prices
and General purchasing power are expressed
 Money proper is the actual money in which contracts
or debts are settled.

8. DEFINITION OF MONEY
According to SCITOVSKY “money is
difficult concept to define, partly
because it fulfills not one but three
functions, each of them providing a
criterion of moneyness those of a unit
of account, a medium of exchange
and store of value. “

9. Topics for presentation
GDP
INTERNATIONAL TRADE
FOREIGN DIRECT
INVESTMENT

10. OLDEST FORM
MONEY?????
OF

11. Cattle are probably the oldest
of all forms of money. Cattle as
money dates back to 9000 B.C.
Some cattle were still used as
money in parts of Africa in the
middle of the 20th century.

12. HAVE YOU EVER HEARD
OF "buck" to describe
money

13. “BUCK”
Before the days of paper
money, Americans traded
animal skins, including
deer and elk bucks, for
goods and services. Hence
the
word
"buck"
to
describe money.

14. A bill can be folded forward and back
4,000 times before it reaches the end of
its lifespan.
The Federal Reserve reports that the
average lifespan of a $1 bill is about 22
months; for the $5 bill it’s two years; for
the $10 bill it’s three years; for the $20 bill
it’s four years; and for the $50 and $100
bills it’s 9 years. Coins are more durable
and can last for about 30 years.

15. When did the picture
of
MAHATMA
GANDHI appear on
Indian notes??

16. 1996 - Reserve Bank, like other
central banks the world over,
changes the design of banknotes
from time to time. The Reserve
Bank has introduced banknotes in
the Mahatma Gandhi Series since
1996 and has so far issued notes in
the
denominations
of Rs.5, Rs.10, Rs.20, Rs.50, Rs.100,
Rs. 500 and Rs.1000 in this series.

17. How many languages in Indian
Rupee Notes

18. 15 LANGUAGES....

19. Why are Re1, Rs.2
and Rs.5 notes
not
being
printed?

20. Volume-wise,
the
share 57% but 7 % in
terms
of
value,
average life = 1 year.
The cost of printing
and servicing these
notes was, thus, not
commensurate with
their life.