concept of money

Concept of Money

Our monetary system developed to meet the changing needs of the economy.

Primitive economies consisted largely of self-sufficient units or groups that lived by means of hunting, fishing, and simple agriculture.

There was a need to exchange goods and services.

as anything authorized by law.

generally accepted as medium of exchange.

one form in which we keep our wealth.

As defined by Farlex Dictionary, Money is a Currency and coin that are guaranteed as legal tender by the government.

Characteristics of Good Money

Importance of Money

Money simplifies matters.Money becomes the medium of exchange.With money, there is low-uncertainty-high-

exchangeability requirement.Money also contributes to economic

development and growth.Money is a store of value.

Functions of Money

As a medium of exchange.

Unit of account or standard of value.

Store of value

Standard of deferred payment.

Sources:

Farlex Dictionary

Alminar-Mutya, R. (2002). Introduction to Philippine Money, Credit, and Banking. Brgy. Ugong, Pasig City: Capitol Publishing House, Inc.

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HISTORY AND REVOLUTION OF MONEY

Bangko Sentral ng PilipinasBangko Sentral ng Pilipinas- - nation’s central monetary nation’s central monetary

authorityauthority Museo ng Bangko Sentral ng Museo ng Bangko Sentral ng

PilipinasPilipinas- formerly Central Bank Museumformerly Central Bank Museum- 19741974- showcases the banks collection of showcases the banks collection of

currenciescurrencies- collects, studies, preserve coins, collects, studies, preserve coins,

paper notes, monetary itemspaper notes, monetary items

PRE-HISPANIC ERAPRE-HISPANIC ERA

piloncitos: piloncitos: first first recognized form recognized form of coinage in the of coinage in the countrycountry

Barter rings: Barter rings: other objects used other objects used as medium of as medium of exchangeexchange

SPANISH ERASPANISH ERA

Galleon TradeGalleon Trade

- - was responsible was responsible for transforming Manila for transforming Manila into a trade center for into a trade center for oriented goodsoriented goods

Cobs or macuquinas:Cobs or macuquinas: odd-shaped selver coinsodd-shaped selver coins


Others coins that Others coins that followed:followed:

- - dos dos mundos or mundos or pillar dollarspillar dollars

- counterstamped counterstamped coinscoins

- Portrait seriesPortrait series


1818thth Century: Century: Royalty of Spain Royalty of Spain authorized the production of authorized the production of copper coins by the copper coins by the Ayuntamiento or Municipality of Ayuntamiento or Municipality of ManilaManila

Barrillas: Barrillas: copper coinscopper coins


Pesos fuertes: Pesos fuertes: first bank notes that were issued in 1852


Casa de Moneda de ManilaCasa de Moneda de Manila

- - minted the first gold coins minted the first gold coins with the word “Filipinas” inscribed, with the word “Filipinas” inscribed, which were called Isabelinas and which were called Isabelinas and AlfonsinosAlfonsinos

Revolutionary PeriodRevolutionary Period

- Two types of 2- centavo coins - Two types of 2- centavo coins were struck in the army weapon were struck in the army weapon store of Malolosstore of Malolos

- rare collection- rare collection

- paper notes were also issued, but - paper notes were also issued, but the circulation was limitedthe circulation was limited

American RegimeAmerican Regime

- - US Congress US Congress passed the passed the Philippine Philippine Coinage Act,Coinage Act, which authorized the which authorized the mintage of silver coins from 1903 mintage of silver coins from 1903 to 1912to 1912


Silver Certificate: Silver Certificate: were issued until were issued until 19181918


Treasury Certificate: Treasury Certificate: replaced replaced Silcer Certificate from 1918 to Silcer Certificate from 1918 to 19351935


Manila MintManila Mint

- produced coins until the - produced coins until the Commonwealth periodCommonwealth period

- first seat of the Central Bank- first seat of the Central Bank

JAPANESE OCCUPATION: JAPANESE OCCUPATION: WORLD WAR IIWORLD WAR II

Japanese Invasion MoneyJapanese Invasion Money

- - Japanese GovernmentJapanese Government

JAPANESE OCCUPATION: JAPANESE OCCUPATION: WORLD WAR IIWORLD WAR II

Guerrilla Notes or Resistance Currencies

- Filipino Guerrillas

Republic PeriodRepublic Period

Central Bank of the PhilippinesCentral Bank of the Philippines

- created by the - created by the Republic Act Republic Act No. 265, January 3, 1949No. 265, January 3, 1949


Victor notes: issued by CBP with overprint “Central Bank of the Philippines”


English Series

- first bank notes issued by CBP


Ang Bagong Lipunan seriesAng Bagong Lipunan series: 1973: 1973


New Design Series: 1985New Design Series: 1985


Central Bank CoinsCentral Bank Coins English Series: 1959English Series: 1959


Pilipino seriesPilipino series: 1967: 1967


Ang Bagong Lipunan seriesAng Bagong Lipunan series: : 19751975


Flora and Fauna: Flora and Fauna: 1983, 1983, improved in 1992improved in 1992


Improved Faura anf Fauna Improved Faura anf Fauna seriesseries

Bukid, CzarinaBukid, CzarinaCruz, Valerie RochelleCruz, Valerie Rochelle

Parangan, Ellaine VinzylParangan, Ellaine Vinzyl206C LC2206C LC2

concept of money

Economy & Finance