DIFFICULTIES OF BARTERLack of double coincidence of wantsLack of common measure of valueIndivisibility of certain goodsDifficulty in storing valueDifficulty in making deferred paymentsLack of specialisation

EVOLUTION OF MONEY

STAGES IN THE EVOLUTION OF MONEYCOMMODIT

Y MONEYMETALLIC

MONEYPAPER

MONEYCREDIT

MONEYNEAR

MONEY

MONEYThe 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 coin-money has been specie, stemming from Latin in specie, meaning 'in kind'.

CLASSIFICATION OF MONEYMONETARY SYSTEM CRITERIONACCEPTABLITY CRITERIONMONEY OF ACCOUNT AND MONEY

PROPER

MONETARY SYSTEM CRITERIONMETALLIC MONEY

Standard Money (intrinsic value > face value) Token Money (intrinsic value < face value) Subsidiary Money

PAPER MONEYRepresentative paper moneyConvertible paper moneyInconvertible paper moneyFiat money

CREDIT MONEY

ACCEPTABLITY CRITERIONLegal tender money

Limited legal tender moneyUnlimited legal tender money

Non-legal tender money

MONEY OF ACCOUNT AND MONEY PROPERMoney 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.

DEFINITION OF MONEYAccording 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. “

Topics for presentationGDPINTERNATIONAL TRADE

FOREIGN DIRECT INVESTMENT

DID YOU KNOW???OLDEST FORM OF MONEY?????

DID YOU KNOW???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.

HAVE YOU EVER HEARD OF "buck" to describe money

DID YOU KNOW???

“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.

DID YOU KNOW???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.

DID YOU KNOW???When did the picture of MAHATMA GANDHI appear on Indian notes??

DID YOU KNOW???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.

DID YOU KNOW???How many languages in Indian Rupee Notes

DID YOU KNOW???15 LANGUAGES....

DID YOU KNOW???

Why are Re1, Rs.2 and Rs.5 notes not being printed? 

DID YOU KNOW???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.