Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Money and Banking

25,941 views

Published on

Junior Cert. Business Studies - Money and Banking Chapter

  • Be the first to comment

Money and Banking

  1. 1.  Money History of Money Bartering Definition of Money
  2. 2.  How did people pay for goods before we had “money” as we know it today? A system known as bartering
  3. 3. Today, bartering no longer exists,except perhaps between friends.E.G. _____________
  4. 4.  In order to barter, each person had to have goods or services that the other person wanted Both items had to be of equal value The goods being exchanged had to be carried around- very awkward if the goods were heavy or bulky
  5. 5.  Money is anything of value that is widely accepted as payment for goods and services
  6. 6.  Medium of exchange Measurement of value Standard of deferred payments Store of value
  7. 7.  On 1st January 2002, Ireland along with 11 other members joined the Euro The EMU was formed (Economic and Monetary Union) There are 17 countries now in the Euro zone Can you name a country other than Ireland that uses the Euro?
  8. 8. Eurozone Countries
  9. 9.  No exchange rate issues No currency exchange fees Ireland’s interest rate should stay relatively low Ireland’s inflation rate should also stay low
  10. 10. 9
  11. 11. Cheque:A written instruction to your bank to pay a sumof money to another person. 9
  12. 12. Cheque: (continued)There are three parties to a cheque: ◦ drawer — the account holder ◦ drawee — the bank where the account is held ◦ payee — the person being paid the money 9
  13. 13.  A cheque contains the following additional information:1. Date 2. Amount in words 3. Amount in figures4. Drawer’s signature 5. Cheque number 6. Account number7. Branch sort code 8. Purpose of payment 9. New balance in account 1 18 2 39 4 5 5 7 6 9
  14. 14. Crossing a chequeCrossing a cheque involves drawing twoparallel lines across the front 9
  15. 15. Plastic Cards:Banks provide a number of “plastic” cards fortheir current account holders: ◦ Laser (Debit) Card ◦ ATM Card ◦ Cheque Guarantee Card ◦ Credit CardPeople use “plastic” to pay for goods andservices and to transfer money to other peoplewithout using cash. 9
  16. 16.  Money can be transferred electronically in the following ways:  Direct Debit A direct debit can be used to make a regular payment where the amount changes each time, e.g. the electricity bill  Standing Order A standing order can be used to make a regular payment where the amount is the same each time, e.g. a regular donation to charity 9
  17. 17.  Money can be transferred electronically in the following ways:  Bank Giro Credit Transfer A bank giro credit transfer is used to make a single payment to another person through the bank, e.g. paying your TV licence  Paypath Paypath is used by employers to transfer the wages of their employees directly into their bank accounts each payday 9

×