TYPES OF MONEY

BANK AND FINANCIAL INSTITUTION

TYPES OF MONEY

ARRANGED BY :

NANDIAS ALFIANA ROSI

2 AK 8

FACULTY OF ECONOMICS AND BUSINESS

SINGAPERBANGSA UNIVERSITY

2017

TABLE OF CONTENTS

List of Contents 

Preface      

BAB I : INTRODUCTION

Definition of money

BAB II : EXPLANATION

Types of Money

BAB III : CLOSING

Bibliography

Preface

Assalamualaikum wr.wb

           First of all, i wanna say thank you for Allah to give me a chance to keep breathing untill now and for all blesses here,also, thanks to my parent, my partner and all my friends. Special thanks for Mr. Irvan Yoga Pardistya,SE,MM to give me this exercises.

          All of the things that we know when i'm doing this exercise isnt easy, i hope that all of my answers can useful and helpful for another people out of here.

Wassalamualaikum wr.wb.

                                          

                                                                                            Karawang, 12nd February 2017

                                                                                                     Nandias Alfiana Rosi

BAB I : INTRODUCTION

WHAT IS MONEY

The word of "money" is believed to originate from a temple of Juno, on Capitoline, one of Rome's seven hills. In the ancient world Juno was often associated with money. The temple of Juno Moneta at Rome was the place where the mint of Ancient Rome was located. The name "Juno" may derive from the Etruscan goddess Uni (which means "the one", "unique", "unit", "union", "united") and "Moneta" either from the Latin word "monere" (remind, warn, or instruct) or the Greek word "moneres" (alone, unique). In the Western world, a prevalent term for coin-money has been specie, stemming from Latin in specie, meaning 'in kind'.

Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context, or is easily converted to such a form.[citation needed] The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, sometimes, a standard of deferred payment. Any item or verifiable record that fulfills these functions can be considered as money.

Money is historically an emergent market phenomenon establishing a commodity money, but nearly all contemporary money systems are based on fiat money. Fiat money, like any check or note of debt, is without use value as a physical commodity. It derives its value by being declared by a government to be legal tender; that is, it must be accepted as a form of payment within the boundaries of the country, for "all debts, public and private”.

The money supply of a country consists of currency (banknotes and coins) and, depending on the particular definition used, one or more types of bank money (the balances held in checking accounts, savings accounts, and other types of bank accounts). Bank money, which consists only of records (mostly computerized in modern banking), forms by far the largest part of broad money in developed countries.

BAB II : EXPLANATION

TYPES OF MONEY

There’s two classifications between money :

A.    Giral Money

Giral Money is created by the urgency of their needs a medium of exchange that’ll more convenient, practical and safe. In Indonesia, bank has entitled to create giral money of other commercial banks thank Bank Indonesia. According to Law no.7 of Banking in 1992, the definition of giral money is common bill, which is can be used at anytime as a payments. The form of giral money can be either as a :

Ø  Credit Card

Ø  Check

Ø  Billyet and Giro

Ø  Obligation

Ø  Stock

Benefits of using Giral Money :

·         Make a simple payments because it doesn’t have to be calculate

·         A measure of paymens can be accepted for unlimited value, the value are equally with the things that we needs.

·         More secure because less risk of money

B.     Cartal Money

Cartal money is classified by paper money and metal money. Cartal money is a tools to pay and must be received by the peoples in buying or selling daily. According to Law of Central Bank No. 13 1968 article 26 paragraph 1, Bank Indonesia has the sole to make a coins and paper money. The sole to issued the money owned by Bank Indonesi as the right Oktroi.

Cartal Money can created in this following way :

v  Depositing cash to the bank and recorded in checking account in depositor, depositor receives a check book and giro slips. Money can be taken at anytime or depositor receive payments through bank. Its called primary deposit.

v  Also, because securities transactions. Cartal money can created by selling to the bank, then the bank posted a return sale. This method is called derivative deposit.

v  Get credit from the banks that are recorded in chrck account and can be retrieved at anytime. This method is called loan deposit.

The form of Cartal Money is :

·         Paper money

Paper money is a money that created by paper with a pict and stereotyping and a legal payments.

·         Metal money

Metal money usually created from gold or silver is the needs the requirements of an efficient money. Because the price of gold and silver are easily recognized and accepted by people. In addition, gold and silver not easily destroyed. Gold and silver are also easily broken down into smaller units. In current area, metal money aren’t rated on the weight of it, but of their nominal value.

BIBLIOGRAPHY

Wikipedia

Kasmir, Bank dan Lembaga Keuangan Lainnya, 2002, Jakarta, PT. Raja Grafindo Persada.

Pratama Rahardja dan Mandala Manurung, Teori Ekonomi Makro, 2005, Jakarta, Fakultas Ekonomi Universitas indonesia.