LESSON 24

GROUP 4
DECALAN, Carrie Joy
BUENAAGUA, Kimberly
DILAN, Lyka Shane
GURON, Harrieth
SOCNOBEN, Joana Marie
VILLANUEVA, Jzeanne Daryll
CUANSO, Jonathan
MEAMO, Jerome
CALINES, Berlyn
IV-St.Philip

-Money is one of the most important things that people would like to have.
BARTER TRADE
*Barter-exchange of goods for other goods.
*Disadvantages: cheating, product replacement, carrying the excess products
*Solution: use money in all their transactions.
WHAT IS MONEY?
-

Is anything used as a medium of exchange, which is accepted by everybody.

Instrument used by individuals to buy products and services that will satisfy their needs
and wants.
The Love of Money is the root of all evil.
Economic transactions became faster with the use of money.

EVOLUTION OF PHILIPPINE MONEY

-Penniform gold barter ring- the first coin that Dr. Gilbert Perez discovered.
*Piloncitos-earliest form of coinage used by the ancient Filipinos.
Spanish Barilla-first coin produced in our country during the Spanish regime.
*Hilis kalamay-the first Spanish coin which was used in the entire island, bore the face of Queen
Isabela of Spain.
*Spanish Barilla-first coin produced in our country during the Spanish regime.
*Dos Mundos-one of the most beautiful coin designs ever produced. First minted in Mexico
during the reign of Philip V.
*El Banco Espanol-Filipino de Isabela II- first bank that was established. It issued the first paper
money called Pesos Fuertes.
*The Philippine Coinage Act of 1902 approved the use of gold exchange standard in our country.
*Japanese occupation-the money was called mickey mouse.
1949-the Central Bank issued paper money in different denominations like 1,2,5,10,20,50 and
100 peso bill.
1.00-Jose Rizal
5.00-Andres Bonifacio
10.00-Apolinario Mabini
20.00-Manuel L. Quezon
50.00-Sergio Osmena
100.00-Manuel Roxas

*During the new society, all currencies had the mark of Ang Bagong Lipunan.
*Some changes were also made in our coins.
5.00-Emilio Aguinaldo
10.00-Andres Bonifacio and Apolinario Mabini
MONETARY STANDARDS
- is a particular kind of standard money used in the country.
- type of money issued in circulation by the government.
- printing and minting of money.
- 2 KINDS: Commodity Standard and Non-Commodity Standard
1. Commodity Standard:
a. Gold Standard-the money in circulation or the standard money is redeemed and has
equivalent in gold. (e.g. United States)
b. Silver Standard-consists of 2 types:
Silver coin Standard
has an equivalent in silver
Silver bullion Standard
*The gold and silver standard has the same characteristics. The only difference is the metal used
in redeeming the money, which is other gold or silver.
MONOMENTALISM AND BIMETALISM
*Monometallic standard-uses one metal like gold or silver as monetary standard.
*Bimetallic-uses two like gold and silver as monetary standard. This kind of standard existed in
England for several years.
*The weakness of bimetallic standard was exposed by the Greshams Law which was explained
by Sir Thomas Gresham. According to him if the 2 kinds of money in circulation have the same
value like gold and silver, people will tend to keep the money with high value. Lower metal
value, remain in circulation, others will keep by the people.
NON-COMMODITY STANDARD
The government opted for an alternative in using monetary standard because of the high
value and cost of metal.

PAPER STANDARD
It is the issuance of paper money in circulation regardless of metal equivalent. Our
country has been under this standard from 1949 up to now. Some of the currencies under this
standard are:
Yen-Japan
Ruble-Russia
Riyal-Saudi Arabia
Baht-Thailand
Yuan-China
Dollar-United States
Lira-Italy
Pound-England
Rupiah-Indonesia
Ringgit-Malaysia
Pesos-Mexico
Singapore dollar-Singapore

FORMS OF MONEY
1. Commodity Money-It is valued metals like gold, silver and bronze as a medium of
exchange. All of these are classified as commodity money. Unlike the other forms of
money, these metal coins have intrinsic values.
*Intrinsic value-refers to the value of metal used in producing the money.
2. Fiat Money-The money that circulated and was used during the Japanese period had no
intrinsic value. This kind of money can only be accepted if it is considered as a legal
tender.
*Legal Tender-means the government guarantees the use of the money in all kinds of
transactions, like payment of debt.
3. Credit Money-refers to any credit instrument accepted as payments for products and
services consumed by individual.
*Check-is a paper where the amount of money, name of bank, and to whom it will be
paid is written.
*Credit cards-or the so-called plastic money is also considered as credit money.
4. Plastic Money- the ATMS and credit cards belong to this form of money.
CHARACTERISTICS OF MONEY
1. Durability-Good money is not easily torn and destroyed.
2. Easy to Recognize-With the use of special materials in minting and printing the money, it
can be easily identified and recognized by the people.
*Counterfeiting-is an act of imitating the original form of money, and is illegal.
3. Acceptability-money as an instrument of exchange is widely accepted by everybody in all

4.
5.
6.
7.
8.

Economic transactions.
Stability-The value of money is not easily affected by the fluctuation of prices in a short
period of time.
Divisibility-Money is divided into different denominations with its real value not
affected.
Portability-Money can be carried or brought anywhere due to its portability.
Uniformity-Every denomination of the currency has a specific color, shape, weight and
design.
Flexibility-The increase and decrease of money supply depends on the needs of the
economy.

FUNCTIONS OF MONEY
1.
2.
3.
4.

Medium of exchange
Store of value
Standard of value
Standard of Deferred Payment

TOPICS:
DECALAN, Carrie Joy--MONETARY STANDARDS
BUENAAGUA, Kimberly--EVOLUTION OF PHILIPPINE MONEY
DILAN, Lyka Shane--PAPER STANDARD
GURON, Harrieth--MONOMENTALISM AND BIMETALISM
--NON-COMMODITY STANDARD
SOCNOBEN, Joana Marie--FORMS OF MONEY
VILLANUEVA, Jzeanne Daryll--- BARTER TRADE
---DEFINITION OF MONEY
CUANSO, Jonathan and
CALINES, Berlyn
---CHARACTERISTICS OF MONEY
MEAMO, Jerome--FUNCTIONS OF MONEY