This document provides an overview of money and banking topics including:
The functions of money as a medium of exchange, measure of value, and method of storing wealth. It defines different measures of the money supply from M1 to M3. It also discusses monetary standards, financial institutions like commercial banks, and the role of the Federal Reserve System in the US.
I’m a young Pakistani Blogger, Academic Writer, Freelancer, Quaidian & MPhil Scholar, Quote Lover, Co-Founder at Essar Student Fund & Blueprism Academia, belonging from Mehdiabad, Skardu, Gilgit Baltistan, Pakistan.
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Economics project for class 12 on money and banking. it explains all the functions about RBI and includes everything needed to achieve good marks in project work.
The concept of money - My Money Week PresentationGabriel DOMBRI
A presentation on the concept and history of money delivered for the students in the International School of Cluj, as a part of the activities in My Money Week event. Burcash was the main partner in personal finance education.
I’m a young Pakistani Blogger, Academic Writer, Freelancer, Quaidian & MPhil Scholar, Quote Lover, Co-Founder at Essar Student Fund & Blueprism Academia, belonging from Mehdiabad, Skardu, Gilgit Baltistan, Pakistan.
I am an academic writer & freelancer! I can work on Research Paper, Thesis Writing, Academic Research, Research Project, Proposals, Assignments, Business Plans, and Case study research.
Expertise:
Management Sciences, Business Management, Marketing, HRM, Banking, Business Marketing, Corporate Finance, International Business Management
For Order Online:
Whatsapp: +923452502478
Portfolio Link: https://blueprismacademia.wordpress.com/
Email: arguni.hasnain@gmail.com
Follow Me:
Linkedin: arguni_hasnain
Instagram : arguni.hasnain
Facebook: arguni.hasnain
Economics project for class 12 on money and banking. it explains all the functions about RBI and includes everything needed to achieve good marks in project work.
The concept of money - My Money Week PresentationGabriel DOMBRI
A presentation on the concept and history of money delivered for the students in the International School of Cluj, as a part of the activities in My Money Week event. Burcash was the main partner in personal finance education.
Case study is the most unsolved part in the Strategic management. There you need to highlight the case along with the academic knowledge. The key areas and the best solution are to be drawn every time. You might be thinking, how you can execute that easily, since you are having the least corporate exposure.
31052024_First India Newspaper Jaipur.pdfFIRST INDIA
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‘वोटर्स विल मस्ट प्रीवेल’ (मतदाताओं को जीतना होगा) अभियान द्वारा जारी हेल्पलाइन नंबर, 4 जून को सुबह 7 बजे से दोपहर 12 बजे तक मतगणना प्रक्रिया में कहीं भी किसी भी तरह के उल्लंघन की रिपोर्ट करने के लिए खुला रहेगा।
हम आग्रह करते हैं कि जो भी सत्ता में आए, वह संविधान का पालन करे, उसकी रक्षा करे और उसे बनाए रखे।" प्रस्ताव में कुल तीन प्रमुख हस्तक्षेप और उनके तंत्र भी प्रस्तुत किए गए। पहला हस्तक्षेप स्वतंत्र मीडिया को प्रोत्साहित करके, वास्तविकता पर आधारित काउंटर नैरेटिव का निर्माण करके और सत्तारूढ़ सरकार द्वारा नियोजित मनोवैज्ञानिक हेरफेर की रणनीति का मुकाबला करके लोगों द्वारा निर्धारित कथा को बनाए रखना और उस पर कार्यकरना था।
role of women and girls in various terror groupssadiakorobi2
Women have three distinct types of involvement: direct involvement in terrorist acts; enabling of others to commit such acts; and facilitating the disengagement of others from violent or extremist groups.
01062024_First India Newspaper Jaipur.pdfFIRST INDIA
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In a May 9, 2024 paper, Juri Opitz from the University of Zurich, along with Shira Wein and Nathan Schneider form Georgetown University, discussed the importance of linguistic expertise in natural language processing (NLP) in an era dominated by large language models (LLMs).
The authors explained that while machine translation (MT) previously relied heavily on linguists, the landscape has shifted. “Linguistics is no longer front and center in the way we build NLP systems,” they said. With the emergence of LLMs, which can generate fluent text without the need for specialized modules to handle grammar or semantic coherence, the need for linguistic expertise in NLP is being questioned.
2. MONEY & EXCHANGE
Money - anything generally accepted as medium
of exchange.
Value of Money - Measured by the goods,
services, and resources that money can purchase.
Barter System - Goods/services exchanged for
each other rather than for money
3. Functions of Money
i. Medium of Exchange
Something that is generally accepted as payment for
goods, services, and resources.
ii. Measure of Value
Value of every good, service, and resource expressed
in terms of an economy’s base unit of money.
iii. Method for Storing Wealth & Delaying Payment
Allows for saving, or storing wealth for future use, and
permits credit, or delayed payments.
MONEY
4.
5. MONEY SUPPLY
M1
Narrowest definition of money supply.
Includes - coins, paper money in circulation,
traveler’s checks, demand deposits, other
checkable deposits.
6. MAJOR COMPONENTS OF M1
Currency
Coins and paper money.
Token Money
Money with a face value greater than the value of the
commodity from which it is made.
Federal Reserve Notes
Paper money issued by the Federal Reserve Banks.
Demand Deposits
Checking account balances kept primarily at
commercial banks.
Other Checkable Deposits
Interest-bearing accounts similar to demand deposits
offered by financial institutions.
7. M2
Includes M1 and:
- Savings, small denomination time deposit
accounts, money market deposit accounts, and
other financial instruments which are highly
liquid.
M3
Includes M2 and:
- Other financial components which are relatively
less liquid.
MONEY SUPPLY
9. Terms for Money Supply
Liquidity
Ease of converting an asset to its value in cash or
spendable funds.
Velocity
Average number of times the money supply is
turned over in a year in relationship to GDP.
MONEY SUPPLY
10. MONETARY STANDARDS
(US CASE SCENARIO)
Commodity Monetary Standard – refers to an
economy’s money is backed by something of
tangible value such as gold or silver.
• Prior to 1933 the U.S. had a gold-coin standard
where gold not only backed the money supply but
also freely circulated in the hands of the public.
• From 1934 to 1971 the U.S. had a gold-bullion
standard, where gold backed the money supply but
was no longer available to the general public.
11. MONETARY STANDARDS
(US CASE SCENARIO)
Paper Monetary Standard - refers to an
economy’s money is not backed by anything of
tangible value such as gold or silver.
• Since 1971 the U.S. economy has been on a
paper monetary standard.
• After foreign debts were paid off in gold bullion
and the U.S. gold reserves were nearly
exhausted, U.S. no longer allowed to back its
money with gold.
12.
13. Lawmakers in Arizona are poised to follow Utah, which authorized bullion for currency in
2011. Similar bills are advancing in Kansas, South Carolina and other states.
15. FINANCIAL INSTITUTIONS
Financial Depository Institutions - institution that
specializes in depository lending, accept and
maintain deposits, and make loans.
Have the ability to create and destroy money.
Come in many forms:
Commercial banks
Savings and loan associations
Savings banks
Credit unions
16. FINANCIAL INSTITUTIONS
Commercial Banks
Primary financial depository institutions.
Institutions that hold and maintain checking
accounts for their customers, make commercial
and other loans, and perform other functions.
17. FINANCIAL INSTITUTIONS
Banking Agencies
Charter Authority
National banks are regulated by a federal agency, and
state banks by a state banking agency.
The Federal Reserve
Regulates its own members and imposes some
uniform regulations on all commercial banks
regardless of membership.
Federal Deposit Insurance Corporation (FDIC)
Administers regulations and insures deposits in
commercial banks that affiliate with the FDIC.
18. FINANCIAL INSTITUTIONS
Financial institutions pursue 2 conflicting goals.
1. Profits
• Too cautious to makes few loans thus will make
few profits.
• Not prudent and make excessive loans may hurt
bank assets and profits should some of it turn
default.
• Thus, control is needed not to be on any extreme
side.
19. FINANCIAL INSTITUTIONS
Financial institutions pursue 2 conflicting goals.
2. Safety (liquidity)
• Safety means having sufficient liquidity to meet
the cash needed by depositors and to meet
transactions as checks clear.
• Banks must balance between profits and liquidity.
20. FINANCIAL INSTITUTIONS
Bank Failure
Occurs when a bank’s assets are no longer sufficient to
cover liabilities that must be paid.
• Usually the result of heavy loan losses and deposit
withdrawals.
• Borrowers not able to pay, banks not able to meet new
demand for loans withdrawals.
• In US, FDIC is the receiver in the event of bank failure,
will back or guarantee the depositors from insured
banks
21. FEDERAL RESERVE SYSTEM
Organization of the Federal Reserve System (US)
Board of Governors - develops relevant policies on
money, banking, etc.
Open Market Committee - oversees the buying and
selling of government securities by the Fed.
Federal Reserve System - 12 banks that deal with
commercial banks and other financial institutions.
22. FEDERAL RESERVE SYSTEM
Functions of the Federal Reserve Banks (US)
• Supervise & examine member banks
• Maintain reserve accounts
• Currency circulation
• Check clearing
25. FEDERAL RESERVE SYSTEM
Organization of the Federal Reserve System (US)
• Board of Governors - develops relevant policies on
money, banking, etc.
• Open Market Committee - oversees the buying and
selling of government securities by the Fed.
• Federal reserve system - 12 banks that deal with
commercial banks and other financial institutions.
• Federal reserve bank (sometimes known as central
bank or monetary authority) is a public institution that
usually issues the currency, regulates the money
supply, and controls the interest rates in a country.
26. FEDERAL RESERVE SYSTEM
Functions may include:
implementing monetary policies i.e. determining
interest rates - used to manage both inflation and the
country's exchange rate, ensuring that this rate takes
effect via a variety of policy mechanisms
controlling the nation's entire money supply
the Government's banker and the bankers' bank
("lender of last resort")
managing the country's foreign exchange and gold
reserves and the Government's stock register
regulating and supervising the banking industry
27. Explain the 3 functions of money.
i. Medium of Exchange
Something that is generally accepted as payment for
goods, services, and resources.
ii. Measure of Value
Value of every good, service, and resource
expressed in terms of an economy’s base unit of
money.
iii. Method for Storing Wealth & Delaying Payment
Allows for saving, or storing wealth for future use,
and permits credit, or delayed payments.
TEST YOUR UNDERSTANDING
28. What is meant by “money be created and
destroyed by commercial banks”?
Money is created when loans were made and
destroyed when loans are repaid. This is due
to the fact that loan itself is an interest-bearing
assets.
TEST YOUR UNDERSTANDING
29. TEST YOUR UNDERSTANDING
Explain the term “bank failure”?
• Bank Failure - occurs when bank’s assets are not
sufficient to cover liabilities that must be paid.
• Usually the result of heavy loan losses and
deposit withdrawals.
• As such, borrowers not able to pay, banks not able to
meet new demand for loans withdrawals.