kinds of money

7/25/2019 Kinds of Money

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KINDS OF MONEY


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1. COMMODITY MONEY

-When one speaks of commodity money,the reference is a!ays the so-caedprecio"s metas# $od and si%er

-&od is $eneray accepted as an

internationa medi"m of irrespecti%e ofthe ideoo$ies of the co"ntriesin%o%ed.


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'. (I)T MONEY

-*efers to a partic"ar money +ein$ "sed ina $i%en co"ntry as ha%in$ no mandate+y means of a!, order, decree, sanctionor command.

-(iat means order or sanction.-In the hiippines, the means of payment

is the c"rrency of peso. This ismandated +y the Centra /ank )ct.


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M)N)&ED C0**ENCY

resenty, at money has $aineddi2erent nomencat"re, s"ch as creditmoney, d"ciary money, incon%erti+epaper money, and non-commodity

money. Nonetheess, as a type ofmonetary system, t money may +ereferred to as #

-Mana$ed aper C"rrency, Mana$ed

aper 3tandard or Incon%erti+e aper3tandard.


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MONET)*Y 3T)ND)*D

The monetary system of a co"ntry is"s"ay descri+ed in terms of its standardmoney. When the standard monetary "nitis $od, the co"ntry is said to ha%e a $odstandard. If the standard money is si%er,

it is si%er standard. When +oth $od andsi%er are "sed as standard money, it isreferred to as +imetaic standard.


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&O4D 5 3I46E* 3T)ND)*D

&od or si%er standard money has +eenaccepta+e any!here, especiay $od.

This means that there is a domesticand internationa condence in the

monetary standard. Th"s, there are nopro+ems in internationa trade.

7o!e%er, $od and si%er ha%e theirshortcomin$s. These are +"ky and

hea%y. In other !ords, they ackporta+iity.


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&O4D 5 3I46E* E8C7)N&E 3T)ND)*D

&od or si%er e9chan$e standard repacedthe $od 5 si%er standard. ) representati%emoney !as "sed as paper or coin money.

The money s"ppy !as e:"i%aent to theamo"nt of $od or si%er reser%es hed +y

the $o%ernment. eope co"d e9chan$etheir representati%e money !ith $od orsi%er if they !ished to.


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INCON6E*TI/4E )E* 3T)ND)*D

The incon%erti+e paper standard or

mana$ed c"rrency standard has +eenre:"ired +y the $o%ernment as thestandard money for a norma transactions.This makes it e$a tender. There are no

$od reser%es to ens"re $eneraaccepta+iity. The $o%ernment orders s"chmonetary standard as a medi"m ofe9chan$e ad as a means of de+t payments.


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DI((E*ENT TYE3 O(MONEY 03ED IN T7E7I4IINE3


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to the more discernin$, money is m"ch more

than a medi"m of e9chan$e. Money is ahistorica doc"ment !hich often pro%idesc"es to the c"t"re, rei$ion and traditions ofa society, primiti%e or ci%ii;ed. Money can

+e, and often is, a !ork of art in itsef,re


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PILONCITOS

Piloncitos are tiny en$ra%ed $od coinsfo"nd in the hiippinesfrom the pre-7ispanic era.
https://en.wikipedia.org/wiki/Philippineshttps://en.wikipedia.org/wiki/Philippines


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CENT*)4 /)N? 3EC0*ITY *INTIN&4)NT, MINT )ND &O4D *E(INE*Y

COM4E8

The compe9, composed of %e inter-connected+"idin$s has an appro9imate


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Its p"rpose !as to safe$"ard theprintin$5mintin$5renin$, iss"ance,

distri+"tion and d"ra+iity of coins,+anknotes, $od +ars, $o%ernment ociareceipts, ottery tickets, interna re%en"estamps, passports, seaman identication

record +ooks, strip stamps, ociadoc"ments, re$istration certicates, Torrenstites, treas"ry !arrants, stocks and +onds,$o%ernment contracts, ration co"pons, forms,checks and other sec"rity printin$ or mintin$

o+s of the hiippine $o%ernment.


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3EC0*ITY *INTIN& 4)NT

In a span of 'AA !orkin$ days, theant has the capa+iity of prod"cin$HJ miion +ank notes. In addition tothis, the pant can ike!ise accept

printin$ other reated sec"rityinstr"ments. 3"ch as MIC*-encodedchecks of the +ankin$ and nanciasystems, deposits pass+ooks, Torrens

tites, interna re%en"e stamps,posta$e stamps, and others.


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T7E MINT)nn"ay, the mint has the capa+iity of

prod"cin$ 1'A miion coins of di2erent

denominations.


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T7E &O4D *E(INE*Y

This is aso a si%er renery. resenty, the

process of con%ertin$ the ra! $od +"ionprod"ced +y hiippine minin$ companiesinto rened $od of GG.B to GG.G nenessis caed eectroysis. The renery has the

capa+iity of prod"cin$ @AA,AAA troyo"nces of $od and JBA,AAA o"nces ofsi%er ann"ay !ithin the accepta+estandard in the internationa market.


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What is the job of theCentral an! re"ar#in"

o$r notes an# coinscirc$lation%


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&n#er 'hat a$thorit( #oes the an"!o

Sentral n" Pili)inas *SP+ iss$e c$rrenc(%

The /3 is the soe $o%ernment instit"tionmandated +y a! to iss"e c"rrency. Inpartic"ar, 3ection BA of *ep"+ic )ct K*.).L No.

@B, other!ise kno!n as The Ne! Centra/ank )ct, stip"ates that the /3 sha ha%e thesoe po!er and a"thority to iss"e c"rrency!ithin the territory of the hiippines.


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What #oes the SP iss$e%

The /3 iss"es notes and

coins for circ"ation in thehiippines. It aso iss"es e$atender commemorati%e notes

and coins.


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Is there a li,it to the a,o$nt ofnotes an# coins that the SP,a( iss$e%

The tota amo"nt of +anknotesand coins that the /3 may iss"esho"d not e9ceed the tota assetsof the /3.


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What is the ol$,e.al$e ofc$rrenc( notes an# coinsiss$e# b( SP%

There are a+o"t '.@B +iionpieces of coins %a"ed at '@.GG+iion and '.' +iion pieces ofnotes %a"ed at GA.J +iion

that had +een iss"ed as of A3eptem+er 'A1B.


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If there are in#ii#$als 'ho t$rn the /-senti,o coin0 'hich has a hole in the

center into a nec!lace0 'ill the( beiolatin" an( la's%

Yes. residentia Decree K.D.L No. 'J prohi+itsand penai;es defacement, m"tiation, tearin$,+"rnin$ or destr"ction of notes and coins. Th"s,appication of o"tside press"re, s"+stance orchemicas that may ca"se deformation,destr"ction or chan$e in the ori$inastate5shape5coor of the coin is a %ioation of .D.

No 'J


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What #o 'e #o 'hen 'e catch a )erson'ritin".)$ttin" ,ar!s in ban!notes%

In case yo" ca"$ht a person !ritin$5p"ttin$ marks in

+anknotes, pease !arn or inform the person of the)nti-m"tiation 4a! or .D. 'J !hich prohi+its andpenai;es the act of c"rrency defacementK!ritin$5p"ttin$ marksL, m"tiation, +"rnin$, tearin$ orany manner sho!in$ act of !if"5intentiona

m"tiation. 3ho"d the act +ecomes ha+it"a to apartic"ar person, the matter sho"d +e reported tothe nearest poice a$ency5a! enforcer, forappropriate action or contact the In%esti$ationDi%ision, C"rrency Iss"e and Inte$rity Oce, /3 for

assistance at Te. Nos.# GHH-JH and G'@-BAG'.


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