Business finance 1 Flashcards
Money is derived from the word _______ surname of
Moneta, Juno
Juno the Guardian of the
Finances of the Roman Empire
a mint or a place for coining money.
Moneta
is generally accepted as the
medium of exchange, a measure of
value or means of payments.
Money
- consist of denomination of a
country’s currency that, by law, must be
accepted as a medium for commercial
exchange and payment for money debt.
Legal tenders
- not legal tenders and are accepted only at the option of the creditor, lender, or seller, also called
Checks and Postal orders
Lawful Money
Checks and postal orders
-conversion of metals into coins.
Coinage
where metals are made into coins.
Mint
Lighter than coins making it
portable.
Paper Money
Representative money was late replaced by what is
termed
Fiat money
the hard plastic card used in
everyday transactions in place of actual bank
notes.
Plastic money
Types of Plastic Money
Credit Card
Debit Card
Cash Card
Prepaid Cash card
allows owners to buy
products on credit, it has a credit limit.
Credit Card
- immediately charged to the
cardholder’s bank account.
Debit Card
- only allows withdrawal of
money through an Authorized Teller
Machine (ATM).
Cash Card
paid by the buyers upon purchase.
Prepaid Cash Card
Types of Prepaid Cash Card
Gift Card/Certificates
Store Card
Multi-currency prepaid Card
can be given as
gifts so that the recipients can choose
what they want as a gift.
Gift Card
generally issued by a
particular store.
store Card
- can load up to six different currencies.
Multi currency prepaid card
FORMS OF MONEY
Commodity Money
Currency (bills and coins)
Check
Bank draft
Money Order
warehouse receipt
used to get what we
want, the things we used to pay for such
maybe term commodity money.
Commodity money
government of
any country issues currency that is legal tender
in the country.
Currency
generally used by business and
person in conducting businesses, and personal
transactions. It is a written order to a bank.
Check
DRAWEE -
bank
Payee
name written on the face o the check
MAker or Drawer
who issues the cheque
Different Types of Checks
- Personal check
- Business check
- Cashier’s check/Manager’’s check
- Certified Check
- Traveler’s Cheque
issued by a person to be
drawn against their own current/ checking
account in a bank.
Personal check
- a check issued by
companies/business used for business
transactions.
Business check
treated as a bank draft, ______ is
issued by the bank against its own account,
ensuring availability of funds to be
purchased with a fee from a bank that
issues the check
Cashier’s check/Manager’s check
like a cashier’s check
issued by the bank certifying that the
account of a person issuing that it has
available funds (just like any ordinary
personal check).
Certified Check
- people who travel and
who do not want to go into the hassle of
exchanging their currency with the currency
of the country they are visiting bring them
what is known as traveler’s check
Traveler’s Check
expiration range of a check
180 days
Checks dated in the future
Post dated Check
Checks that are 180 days old
Stale checks
– if Nawala ang
check need ng SPO but with charge (250 php
+ 2,200 charge)
SPO - Stop Payment order
1 check booklet =
50 pcs
you should by banks against their
own account
- sometimes called cashier’s check or
managers check - to get a bank draft, a customer goes to
the bank to request it. - the bank will ensure that the customer
has enough money in the bank or
presents enough cash
Bank draft
TYPES OF BANK DRAFT
- Demand Draft
- Time Draft
- Local draft
- International draft
- automatic bank drank
- refers to the instrument issued
generally by the post office of a country
ordering a sum of money to be paid to the
payee indicated on the instrument itself.
Money order
an act creating the Philippine
Postal Corporation under Art. II, Sec. 6
R.A. 7354
a document of
title to goods used as proof of profession or
control of the goods covered by the receipt.
Warehouse receipts
BASIC SECURITY FEATURES OF THE NEW
GENERATION CURRENCY
EMBOSSED PRINTS - Republika ng Pilipinas,
Signatures, hero face, etc.
SERIAL NUMBER - Upper right and lower left
numbers on note
SECURITY FIBERS - Visible fibers embedded
and scattered randomly in paper.
WATERMARK - Replica of the face on the bill,
amount or number
SEE-THROUGH MARK - Baybayin (means
“Pilipino”) seen on paper.
CONCEALED VALUE - smaller version of the
money’s value
SECURITY THREAD - 2mm wide security
thread for 20, 50; 4mm wide for 100, 200, 500, 1000
OPTICALLY VARIABLE DEVICE (OVD)
PATCH - Reflective foil (circle) besides the
money’s faces.
OPTICALLY VARIABLE INK (OVI) -
Color-shifting that only 1000-peso bills have
this.
4MS
Matibay
Makulay
Maganda
Malinis
Composition of paper money
● 80 % - cotton
● 20 % - abaca
- gives money
embossed prints
Intaglio printing process
