Money can be anything that is taken in payment for goods or services. Every society has a money economy based on coins and paper notes. In primitive societies a system of barter was used. Barter is a system of direct exchange of one good or service for another. People needed a more practical system of exchange. Cattle, grain, teeth, tobacco, salt were used. Precious metals became popular, because they were portable, durable, recognizable and divisible.
A coin is a piece of metal, usually disk-shaped, which bears numbers showing its value. Coins were made of gold, copper, aluminum, nickel, lead, plastic. Nowadays valuable metal is replaced by paper notes.
Now most governments issue paper money in the forms of notes. Paper money is easy to handle and convenient in the modern world. Cheques, credit cards are also used increasingly. The value of money is its value as a medium of exchange or its purchasing power. The purchasing power depends on supply and demand. Money is the medium through which people exchange goods and services.
Money should possess the following qualities:
1) Portability - Money should be small and light for people to carry
2) Durability - A very high quality paper must be used for money
3) Divisibility - It is ability to be divided into parts
4) Recognizability - Money should be easily recognized and hard to copy
goods or services
coins and paper notes
issue paper money
value of money
medium of exchange
supply and demand
possess the following qualities
Structure of the bank
The English commercial banks have branches in all major towns and similar structure. The owners are the shareholders. They provide the necessary capital. The Chairman and Board of Directors are elected by the ordinary shareholders at the Annual General Meeting. They are responsible for the efficient management of the bank. The Board appoints the Managing Director.
The essence of a bank's activities is the collection of deposits (current accounts and deposit accounts) and use of these funds to provide loans and investments.
At the end of each business year the Annual General Meeting decides how much of the profit is distributed to the shareholders as dividend, and how much is in business. At the end of the year the bank publishes Report and Accounts and sends, to each shareholder.
Current account and deposit account
There are different types of bank accounts. The most popular are current account and deposit account. To open a current account you need to see a branch manager. You must also give background information and reference from your employer. You may withdraw money at any time. There is no interest rate. A manager gives you a cheque book.
To open a deposit account there is no need to see a branch manager. You must fill in a form and then deposit a minimum amount of money. The interest rate is usually between 4-9 per cent. You can not withdraw money at any time. The customer is then given a pass book.
Текущий счет и депозитный счет
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