Ch1-L2: the concept and development of money Flashcards
(107 cards)
what are the origins of the word “money” and their meaning?
- Latin word “moneta”
- surname of the Roman goddess Juno (the guardian
of the finances of Roman Empire)
- Moneta refers to a mint or a place for coining money. - Old French “monoie” & Modern French “monnaie”
- meaning money, coin currency, or change. - Latin term “monere”
- meaning advise or warn. - In Ancient Greece “moneta”
- meant advisor, one who warns, or makes people remember.
what is another term for money and what does it mean
“bucks”
- which came from the word “buckins”
> meaning “deer hides,” a medium of exchange used
by settlers during the early times.
according to m_______________ money is defined as?
Merriam-Webster
- as something generally accepted as a medium of exchange , a measure of value , or means of payments.
money is commonly defined as anything…?
- as anything
> authorized by law to be generally accepted as legal tender,
> as a medium of exchange , and
> a standard value in payment of goods and services (without reference to the general standing of the person who offers it.)
according to b__________________ legal tender consist of _________________of a country’s currency that by law must be accepted as a __________________________________ and__________________________.
Business Dictionary.com
- consist of a denomination of a country’s currency that, by law must be accepted as a medium for commercial exchange and payment for a money debt.
While all denominations of the ___________________________are usually_______________, the denomination and amount in coins acceptable is ___________________________________________________.
While all denominations of the circulating paper money are usually legal tenders, the denomination and amount in coins acceptable is legal tender vary from country to country.
___________________________ are not legal tenders and are accepted only at the option of the ____________, __________, or ___________, also called ________________.
Checks and postal orders are not legal tenders and are accepted only at the option of the creditor, lender, or seller , also called lawful money.
From the foregoing definitions of money, it can be noted that money is?????? (5 functions of money?)
[MLM MS]
- medium of exchange;
- legal tender;
- measure of value;
- means of payment; and
- standard value.
Coinage is the?
conversion of metals into coins of a fixed
weight.
The place where metals are made into coins is known as?
mint
Money in the form of __________ became ___________________________________________ and, later, a ________________________________________________.
Money in the form of coins became a convenient commodity for exchange transactions and, later, a convenient tool for comparing and storing values
A coin is an _________ of metal, the _________ and ______________ of which are certified by the ______________________________________________________
A coin is an ingot of metal, the weight and fineness of which are certified by the integrity of the design on its surface and the power of the issuing authority.
The _________________ is the only authority granted the power of __________ and, ultimately, the power to __________ bills as money. This is an essential step in any ______________________.
The government is the only authority granted the power of coinage and, ultimately, the power to print bills as money. This is an essential step in any monetary system.
With the government’s sole authority to mint coins and print bills, the following basic purposes are assumed:
- Prevent confusion
- Ensure uniformity and fineness (ration of weight of pure metal to total weight, expressed in decimal or carat) of coins
- Facilitate exchange
- Ensure confidence on the part of the citizenry with respect to the government’s monetary system.
It is for these reasons that the fundamental law or the constitutions of any country grants the power to mint coins and print bills to its government alone, usually vested in its central bank.
In the Philippines, the power to mint coins and print bills is vested in the?
Bangko Sentral ng Pilipinas (BSP)
who ensures stability in the Philippine monetary system?
the BSP
who is the current Governor of the Bangko Sentral ng Pilipinas/Officeholder
Eli M. Remolona, Jr.
any private coinage is considered?
counterfeit
The government has made it difficult for coins to be counterfeited.
as of Feb 2014 how much is the Cost of the coinage(???????)
P0.76 per 1c to P1
Denomination = Unit cost
1-sentimo = P 0.9434
5-sentimo = P 0.4798
10-sentimo = P 0.4782
25-sentimo = P 0.7419
1-piso = P 1.1825
5-piso = P 3.4663
10-piso = P 4.4128
____________ money is ____________ than coins, making it more _____________
Paper money is lighter than coins, making it more portable
To _______________________ , the government issued __________ money to represent certain quantities of _____ or ________ kept by the government to cover _________________.
To facilitate exchange , the government issued paper money to represent certain quantities of gold or silver kept by the government to cover what has been issued.
Paper money can be called ___________________________ , following the ______ use of _______________ money.
Paper money can be called representative paper money, following the long use of commodity money.
Representative money was late replaced by what is
termed ________________.
fiat money
Plastic money is made of ______________.
polymer
