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MONEY
Financial Management
The role of the financial
management is to look and
secure funds needed by the
business.
Forms of funds
Money
Credit
What is money?
Money is anything used by society as
a medium of exchange, and is widely
acceptable for the payment of goods
and services without questioning the
integrity of the person offering it.
Money supply is consist of deposit
money, which is withdrawable by
means of checks and currency,
which consist of notes and coins.
The primary function of money is to
Money
Money
Money
Cash on Hand
Cash
Cash in Bank
Is
Money
Cash Management
Significance of money
Functions of money
As a medium of exchange
Transferred from person to person.
As a standard to measure the value of
goods and services
It is used as a yardstick in the pricing of
things
As a means of deferred payment
As a store value
Liquidity an asset may be converted
into money without significant
inconvenience or loss of time
FUNCTIONS OF MONEY
By saving
The productive way of keeping money for future use
is by depositing it in a bank
By investing
Investments can be made in business, corporate or
government securities, money market, real estate
properties and jewelries
Investment in business has three divisions:
Industrial business manufacture of goods
Commercial business bridging the gap between
the producer and the ultimate consumer
Servicing business concerned with the rendering
of services
ATTRIBUTES OF GOOD
MONEY
ATTRIBUTES OF GOOD
MONEY
KINDS OF MONEY
Commodity money has a value of
its own
In modern times, the types of
commodity money are gold and
silver
Credit money able in payment of
goods and services, debts and
obligations
KINDS OF MONEY
KINDS OF MONEY
KINDS OF MONEY
Fiat Money paper money issued by
government edict or decree
Legal Tender Money kind of money
that circulates because of its legal
tender power
CREDIT
What is Credit?
Characteristics of Credit
Significance of Credit
Allows the possible production of
goods
To provide financial means for
businessmen
To promote full employment