1. DIFFICULTIES OF BARTER
Lack of double coincidence of wants
Lack of common measure of value
Indivisibility of certain goods
Difficulty in storing value
Difficulty in making deferred payments
Lack of specialisation
EVOLUTION OF MONEY
2. STAGES IN THE EVOLUTION OF MONEY
COMMODITY
MONEY
METALLIC
MONEY
PAPER MONEY
CREDIT
MONEY
NEAR MONEY
3. MONEY
The word "money" is believed to originate from a
temple of Hera, located on Capitoline, one of
Rome's seven hills. In the ancient world Hera was
often associated with money. The temple of Juno
Moneta at Rome was the place where the mint of
Ancient Rome was located.
In the Western world, a prevalent term for coinmoney has been specie, stemming from Latin in
specie, meaning 'in kind'.
4. CLASSIFICATION OF MONEY
MONETARY SYSTEM CRITERION
ACCEPTABLITY CRITERION
MONEY OF ACCOUNT AND MONEY PROPER
5. MONETARY SYSTEM CRITERION
METALLIC MONEY
Standard Money (intrinsic value > face value)
Token Money (intrinsic value < face value)
Subsidiary Money
PAPER MONEY
Representative paper money
Convertible paper money
Inconvertible paper money
Fiat money
CREDIT MONEY
7. MONEY OF ACCOUNT AND
MONEY PROPER
Money of account is that in which Debts and Prices
and General purchasing power are expressed
Money proper is the actual money in which contracts
or debts are settled.
8. DEFINITION OF MONEY
According to SCITOVSKY “money is
difficult concept to define, partly
because it fulfills not one but three
functions, each of them providing a
criterion of moneyness those of a unit
of account, a medium of exchange
and store of value. “
11. Cattle are probably the oldest
of all forms of money. Cattle as
money dates back to 9000 B.C.
Some cattle were still used as
money in parts of Africa in the
middle of the 20th century.
13. “BUCK”
Before the days of paper
money, Americans traded
animal skins, including
deer and elk bucks, for
goods and services. Hence
the
word
"buck"
to
describe money.
14. A bill can be folded forward and back
4,000 times before it reaches the end of
its lifespan.
The Federal Reserve reports that the
average lifespan of a $1 bill is about 22
months; for the $5 bill it’s two years; for
the $10 bill it’s three years; for the $20 bill
it’s four years; and for the $50 and $100
bills it’s 9 years. Coins are more durable
and can last for about 30 years.
15. When did the picture
of
MAHATMA
GANDHI appear on
Indian notes??
16. 1996 - Reserve Bank, like other
central banks the world over,
changes the design of banknotes
from time to time. The Reserve
Bank has introduced banknotes in
the Mahatma Gandhi Series since
1996 and has so far issued notes in
the
denominations
of Rs.5, Rs.10, Rs.20, Rs.50, Rs.100,
Rs. 500 and Rs.1000 in this series.
19. Why are Re1, Rs.2
and Rs.5 notes
not
being
printed?
20. Volume-wise,
the
share 57% but 7 % in
terms
of
value,
average life = 1 year.
The cost of printing
and servicing these
notes was, thus, not
commensurate with
their life.
