Preliminary Flashcards
Art and science of managing money
Finance
Subject area in economics that encompasses the study of money, credit and banking and it is concerned with resource allocation as well as resource management, acquisition and investment
Finance
Study of how individuals, institutions, governments and businesses and businesses acquire, spend and manage money and other financial assets
Finance
Areas of Finance
Investments Financial institution Public Finance Corporate Finance Personal Finance
Refers to the commitment of fund to one or more assets that will be held over some future time periods
Investments
Are organizations like banks, insurance/investment comoanies. Are electronic forums that facilitate the flow of funds among investors and businesses
Financial Institution/Financial Market
Deals with taxation, bonds issues, budgeting, asset management and financial planning of government
Public Finance
Deals with the acquisition of cash and efficient allocation of other cash within the corporation
Corporate/Private Finance
Deals with the proper management of an individual of money to achieve personal economic satisfaction
Personal Finance
Is the business activity which concerns with planning, raising, controlling, administering of funds used in the business
Business finance
Is concerned with budgeting, financial forecasting, cash management, credit administration, investment analysis and fund procurement of the business concern to adopt modern technology and application suitable to the global environment
Corporate finance
2 major parts of finance or it concerns with revenue and disbursement of government fund
Public Finance
Private Finance
Deals with the requirements, receipts and payment of funds
Public Finance
Public Finance
Government institutions
Central government
State governments
Local self governments
Deals with the requirements, receipts, and payments of funds in case of
Private Finance
Private finance
Personal or individual
Business organization
Non profit organization
Brazil
Real
Bolivar
Venezuela
Algeria
Dinar
Jordan
Dinar
Kuwait
Dinar
Morocco
Dirham
United Arab Emirates
Dirham
Australia
Dollar
Canada
Dollar
New Zealand
Dollar
Singapore
Dollar
US
Dollar
Greece
Drachma
Belgium
Franc
Switzerland
Franc
Netherlands
Guilder
Suriname
Guilder
Czech Republic
Koruna
Slovak Republic
Koruna
Iceland
Krona
Sweden
Krona
Italy
Lira
Turkey
Lira
Germany
Mark
Spain
Peseta
Argentina
Peso
Chile
Peso
Colombia
Peso
Mexico
Peso
Philippines
Peso
Uruguay
Peso
Egypt
Pound
Great Britain
Pound
Lebanon
Pound
South Africa
Rand
Namibia
Rand
Saudi Arabia
Riyal
Qatar
Riyal
Russia
Ruble
India
Rupee
Pakistan
Rupee
Austria
Schilling
Japan
Yen
China
Yuan
Poland
Zloty
Reasons for studying finance
To make informed economic and final decisions
To acquire basic knowledge of investment for business and personal reasons
To acquire basis understanding of financial management
Anything need to make payment for goods, service or a debt obligation
Money
A generally acceptable medium of exchange
Money
Basic Functions of Money
Money serves as a medium of exchange
Money serves as a standard value
Money serves as is store of value
Money serves as standard of different payment
Money serves as a reserve or guaranty for solvency
Kinds of money
Commodity money
Credit money
Fiat money
Electronic money or E-money
Money that is made up of precious metals like gold or silver or another valuable commodity like cattle, rice, shells
Commodity Money
Types of Commodity Money
Full-bodied commodity money
Taken commodity money
Credit money
Fiat money
Money serves as a standard of differed payment
Money serves as a reserve or guaranty for solvency
Is that type which has its monetary or exchange value equal to that of its intrinsic value
Full-bodied commodity money
One whose monetary exchange value is higher than its intrinsic value
Taken commodity money
Money that is backed up by a promise to pay
Credit money
Usually takes the form of currency (metallic coins and paper money) and is found in all countries that have central government including the Philippines.
Fiat money
This is not convertible into coins or precious metal. It is backed up by a government promise that is it legally acceptable as a means of exchange for products
Fiat money
Money evolves as the requirements for its use become more spohisticated. Advances in technology made possible the introduction of newer forms of money. The first to be developed is money stored electronically
E-Money
Electronic money
Forms of Electronic Money
Debit Cards
Stored-value Card
Electronic Cash
Electronic Checks
These cards are used to transfer funds from the bank account of a buyer to the bank account of the seller
Debit cards
One that contains a fixed amount of digital cash
Stored value card
Form of electronic money that is used to buy products through the internet
Electronic cash or e-cash
Form of money used by those who make transactions through the internet
Electronic checks
Form: Objects like cattle, tobacco,rice, etc. metals like gold, silver paper money
Drawbacks: not easy to transport subject to counterfeiting, can be stolen in large amounts
Forms: Checks
Drawbacks: not generally acceptable
Forms: electronic money
Drawbacks: requires special equipment
It is written by the buyer through his personal computer. Then sends the electronic check to the seller via internet
Electronic checks
Characteristics of Good money
Divisibility Portability Durability Stability Difficult to counterfeit
Refers to that characteristic wherein money can be issued in various denomination to facilitate the exchange process
Divisibility
To be able to function effectively as a medium of exchange, money must be portable
Portability
One of the characteristics required of a good money
Durability
Good money must have the characteristic of having a stable value. One would not want to accept money as payment if its value fluctuates
Stability
Undertaken by persons who want to benefit from the high exchange value of paper currently
Difficult to counterfeit
Yes. Forming small communities which aim to be a self-sufficient home, grow all their own food and use the power of the wind and sun to obtain free electricity and heating
Living without money
The first Philippine paper money was issued by __ in _
El Banco Español Filipino de Isabel Segunda
1851
Since the bank was the first established in the Philippines, it was inevitable that it will issue the first paper money in the country
El Banco Español-Filipino de Isabel Segunda (Bank of the Philippine Islands)
Changes in the political set-up also brought certain changes in the Philippine paper money those which issued paper money consists of a privately-owned bank
Philippine Government under Aguinaldo
United States Government
Government-owned bank
Central Bank of the Philippines
Philippine paper money was issued in various denominations and as many as from one centavo to one thousand pesos during the __
Japanese occupation
Who was commissioned by the Central Bank to trace the development of coinage, paper money and banking in the Philippines from the earliest times up to the present
Victorino Manalo
The earliest known currency used in the Philippines are called
Piloncitos
Piloncitos are small gold coins and individually weight from __of pure gold. Their use pre-dates the arrival of Magellan in __
0.09 to 2.65 grams
1521
Halimbawa: Ang ngiyaw ng pusa, tilaok mg manok, lagaslas ng tubig sa ilog at iba pa ay patunay na ang likas na tunog sa paligid ay may malaking kinalaman sa pagbuo ng wika
Teoryang bow-wow
Halimbawa: Tunog ng kampana, tiktak ng orasan, langingit ng kawayan, talbog ng bola
Teoryang ding-dong
Natuto raw tayo mangusap dahil sa damdaming ating nais ipahayag tulad ng galit, tuwa, lungkot, takot, pagkabigla at iba pa
Teoryang Pooh-pooh
Nabuo ni Noir, isang iskolar noong ika-19 na dantaon
Teoryang Yo-he-ho
Nagwika ay nagmula sa mga ingay na nalilikha ng mga taong magkatuwamg sa kanilang pagtatrabaho gaya ng pagbubuwal ng kahiy o pag-aangat ng malaking bato
Teoryang Yo-he-ho
Nakatuon na pwersang pisikal ng tao
Teoryang Yo-he-ho
It ay galing sa salitang Pranses na nangangahulugang paalam
Teoryang Ta-ta
Ang kumpas ng kamay ng tao na kanyang ginagawa sa bawat particular na okasyon ay sinusundan ng paggalaw ng dila at nagigimg sanhi upang matutong makabuo ng salita ang tao
Teiryang ta-ta
Ang wika ay ang ugat sa mga tunog na nalikha ng mga sinaunang tao mula sa ritwak at dasal
Teoryang Ta-ra-ra-boom-de-ay
Ang bata ang ipinanganak na may sapat na lakas at kakayahan sa pagkatuto
Teoryang Behaviorist
Maaring hubugin ang gawi at kilos sa pamamagitan ng pagkontrol sa kanyang kapaligiran
Teoryang Behaviorist
Ang pagkatuto ng wika ay naapektuhan din ng kanyang kapaligiran
Teoryang Behaviorist
Ang pagkatuto ng wika ng bata ay batay sa kanyang angking likas na kakayahan
Teoryang Innative
Nagsisimula ang ganap na pagkatuto ng wika ng isang bata sa gulang na lima o anim na taon
Teoryang Innative
Ang pagkatuto ng wika ay nagaganap matapos maunawaan ang isang bagay o pangyayari. Kailangang nauunawaan ng tao ang mga impormasyon o kabatirang natanggap upang makabuo ng isang orihinal na pangungusap
Teoryang Cognitive
Ang kamalia. Sa paggamit ng wika ay karaniwan at kadalasang nagyayari ang pagkakamali ay palantandaan ng pagkatuto
Teoryang Cognitive
BSP
Bangko Sentral Ng Pilipinas
NGC
New Generation Currency
NDS
New Design Series
Principles
Currency Integrity Aesthetics Social Relevance Efficiency Unified theme
Result of meeting the minds of people with diverse backgrounds and ideas
NGC
BSP announced the issuance of NGC
2010
The old “family” of design series has been in circulation for the last quarter of a century
NDS
The BSP enhanced the security features of the NDS in __ by integrating __ in the higher denomination with ___
iridescent band and widowed security thread
100 piso up to 1000 piso
CURRENCY INTEGRITY
The substrate was improved as well by incorporating ___ instead of ___
Abaca fibers
Linen
It is the BSP’s latest initiative to protect currency integrity from the threat of rapidly improving reprographic technology
Issuance of NGCs
Preserving and maintaining ___ contribute to enhancing public trust and confidence in the BSP which has the sole power and authority to issue currency in the country
Currency Integrity
The design of the NGC was carefully evaluated to make it relevant, coherent, and consistent with the country’s goals and aspirations. One significant design aspect is the tribute to ___
Social relevance
Filipino heroism
They were made younger looking on the notes to reflect the era where they actually began their distinguished public service
Filipino heroes
Filipino laceworks and accent designs
World Heritage Sites and Natural Iconic wonders
Important spiritual dimension/adage
Important spiritual dimension/adage obverse of all denominations
Pinagpala ang bayan na ang Diyos ay ang Panginoon (Blessed is the nation whose God is the Lord)
The NGC has been made adaptable to the latest and anticipated innovations in currency processing machines to maximize output and increase the level of efficiency in currency operation
Efficiency
The NDS begun in ___ with the 5 and 10 peso denominations followed by 20-piso in __, 50-piso, 100-piso and 500-piso in __ and 1000-piso in __. Except for the 200-piso issued in __. It took about __ for the seven NDS to be completes
1985 1986 1987 1991 2002 6
It was meticulously observed in capturing the essence of the design elements of the NGC notes in distinctive style without compromising the security features of the currency
Aesthetics balance
A result of the meeting of the minds of people with diverse backgrounds and ideas
NGC
The formal conceptualization process of the NGC started in __
2007
The NGC project was undertaken by the __ in consultation with the _
BSP’s Num Com (Numismatic Committee)MB Monetary Board
BSP Governor and the President of the Philippines
Features of the NGC
Thematic content
Designs
Security features
The features of the NGC took __
3 years
The choices for thematic content also benefited from the expertise and insights of __
Former Central Bank Governor Jaime C. Laya
The personalities depicted in the portraits belong to various eras in the history of the country but they perpetuate the values and aspirations that are
Heroism
Coins
5 10 25 1 5 10
Bills
20 50 100 200 500 1000
Testament to our hard work
Bank notes
How to determine if your new Philippine peso bills are fake or Genuine
OVD Patches Check for blue and red fibers Look for hidden watermarks Feel the embossed text Texture is rough Asymmetrical serial number Correct
General statements that describes the causes of changes in financial variables such as: money supply and interest rates and the effects of these changes in variables in real sector such as 1)EMPLOYMENT 2) PRODUCTION and 3) PRICES
Monetary theory
Heroes noted 20-peso bill
Manuel L. Quezon
Heroes noted 50-peso bill
President Sergio Osmena
World War II Heroes noted 1000 peso-bill
Josefa Llanes Escoda
Brigadier General Vicente P. Lim
Heroes noted 100 peso bill
President Manuel A. Roxas
Heroes noted 200-peso bill
President Diosdado Macapagal
Modern day Heroes noted 500-peso bill
President Corazon C. Aquino
Senator Benigno S. Aquino Jr.
World heritage sites, natural iconic wonders 20-piso
Banaue Rice Terraces
World heritage sites, natural iconic wonders 100-piso
Mayon Volcano
World heritage sites, natural iconic wonders 200-piso
Chocolate Hills
World heritage sites, natural iconic wonders 500-piso
Puerto Prinsesa Subterranean River
World heritage sites, natural iconic wonders 1000-piso
Tubbataha Reefs Natural Park
NGC can be aptly described in Four filipino Adjectives
Matibay (strong)
Makulay (colorful)
Maganda (beautiful)
Malinis (clean)
