Presention about what money, its types,modes and currency notes and what is the history of currency notes in pakistan

2. Content :
• What Is Money ?
• Properties Of Money
• Types Of Money
• Functions Of Money
• History Of Currency Notes In Pakistan
• Security Features Of Currency Notes

3. Economists, however, have a language all their own when it comes to money.
They define it as
 something that serves as a medium of exchange,
 a unit of accounting
 store of value

4.  Fungibility: its individual units must be capable of mutual substitution
 Durability: able to withstand repeated use.
 Portability: easily carried and transported.
 Cognizability: its value must be easily identified.
 Stability of value: its value should not fluctuate

5. There are four Basic types of Money
 Commodity Money
 Fiat Money
 Fiduciary Money
 Commercial Bank Money

6.  Type of money which is used in barter system where the valuable resources
fulfill the functions of money used for the purpose.
 limited by the scarcity of the resources.
 Whenever any commodity is used for the exchange purpose
 Among these, there are several precious metals like gold, silver, copper and
many more.

7.  The word fiat means the “command of the sovereign”.
 Fiat currency is the kind of money which doesn’t have any intrinsic value and it
can’t convert into a valuable resource.
 Today Fiat money is the basis of all the modern money system
 The real value of fiat money is determined by the market forces of demand and
supply
 The U.S. dollar is an example of fiat money.

8.  Whenever any bank assures the customers to pay in different types of money
and when the customer can sell the promise or transfer it to somebody else, it is
called the fiduciary money
 .Fiduciary money is generally paid in gold, silver or paper money.
 There are cheques and banknotes, which are the examples of fiduciary money

9.  Commercial Bank money or demand deposits are claims against financial
institutions that can be used for the purchase of goods and services.
 funds can be withdrawn at any time by cheque or cash withdrawal without
giving the bank or financial institution any prior notice
 Demand deposit withdrawals can be performed in person, via cheques or bank
drafts, using automatic teller machines (ATMs), or through online banking

10.  Medium Of Exchange
 Unit of accounting
 Store of value

11.  Money can be used for buying and selling goods and services
 If there were no money, goods would have to be exchanged through the process
of barter

12.  Money is the common standard for measuring relative worth of goods and
service
 It is necessary for developing efficient accounting systems
 price is nothing but value goods expressed in terms of money
 Money acts as a standard measure and common denomination of trade

13. A man who wants to store his wealth in some convenient form will find money
admirably suitable for the purpose
 To act as a store of value, money must be able to be reliably saved, stored, and
retrieved – and be predictably usable as a medium of exchange when it is
retrieved
 reducing the value of money, diminishes the ability of the money to function as
a store of value.

14.  Money is used as a standard for future (deferred) payments.
 It forms the basis for credit transactions
 Business in modern times is based on credit to a large extent.
 In credit, since payment is made at a future date, there must be some medium
which will have as far as possible the same exchange power in the future as at
present

15.  13 August 1947, the day before partition. Under this order, the Reserve Bank
of India was to act as the common currency authority for India and Pakistan
until 30 September 1948
 1 April 1948 the currency notes were inscribed with “"Government of
Pakistan" both in Urdu and English, and placed into circulation under the
responsibility of the Government of Pakistan
 Pakistan government tasked its Finance Ministry to set up the country's own
state bank by 1 July 1948

16.  The initial set of bank notes, in the denominations of 5, 10 and 100 rupees, was
prepared by Thomas De La Rue & Company of Great Britain . (The 5-rupee note
was deep blue, the 10-rupee in red, and the 100-rupee note was in rich green
colour)
 Till 1960, when Pakistan adopted the metric system, one Pakistani rupee had 16
ana and each ana having 4 paisa, i.e. one rupee having 64 paisas
 For the coins, there were coins of one, two paisa, one ana, two ana, 4 ana, 8 ana
and one rupia (rupee). Thus, one ana was the basic coin.

17.  Then in 1960, the country switched to metric system and now one Pakistani
rupee had 100 paisa. The coins were of one, two, five, 10, 25, 50 paisa. Later a
coin of one rupee was also added. Currency notes of 1,2,5,10,50,100 and 500
have been in use for quite sometime now.
 The present currency notes in circulation are of Rs10, 20, 50,100, 500, 1000 and
5000 denominations
 currency notes of one, two and five have been replaced with coins
 All coins of lower than one rupee have ceased to be of any value and are not in
circulation anymore.

18.  Portrait appears at the right or left of the notes
 Electrotype watermark appears below the portrait
 Partially embedded window security thread into the paper runs from top to bottom at the
front left side of the note
 The Optical Variable ink design changes colour from magenta to green and green to
magenta, when the note is viewed from different angles
 See through, Value figure of the note appears partly at the obverse left top and partly at
reverse right top giving a perfect look when viewed through light.

19.  Anti-scan and anti-copy line patterns appearing at the note prevent scanning and
photo copying of the exact note.
 Year of production appears at the note.
 Micro printing
 Unique Numbering, consisting of letters and numbers, are printed on the back of all
new banknotes.
 Overall Feel of the Banknotes have a distinctive crisp feel, because of the unique
banknote paper and the raised print
 Feature for the Visually Impaired: There is pronounced (i.e. prominent) raised print
on the bottom left- and right-hand sides on the front of all the banknotes