should not exchange abruptly.

If ever there will be changes,

What is Money? such change should be gradual.

Money is any good or token that

functions as a medium of exchange Portability

socially and legally accepted in payment This refers to the quality of

for goods and services. money being easily

carried from one place to another.

Legal Tender

Is a medium of payment recognized Cognizability

by a legal system to be valid for meeting The money circulating within

a financial obligation. the country can be easily

distinguished from other

Money as a synonym of the word kinds of money.

“income” and “wealth”.

Divisibility

Income- is defined as flow of earnings The material used as money

in a given period of time. must be capable of being divide

Wealth- refers to the total collection into smaller denominations w/o

of the prices of property in a given destroying the value of the whole.

point of time.

Homogeneity

Medium of Exchange Money should have equal weight

The most important function and fineness must be made of

of money. the same material and posses

equal value as well.

Standard of Deferred Payment

Payments which are made Elasticity

from in the future. It refers to the value of money

being capable of manipulation

Store of Value by monetary authorities.

An item could be reliably saved,

stored and retrieved after a

period of time. Durability

It enables money to

Attributes of Good Money and Kinds of Money withstand wear and tear.

General Acceptability Kinds of Money

Good money should be

acceptable to everybody in a Outside Money

specific territory. Commodity Money

This money has intrinsic value.

Whenever any commodity
Stability of Value
is used for the exchange purpose, the
The purchasing of power
commodity becomes
 equivalent to the money. Debit card -

is a plastic payment card

Fiat Money that can be used instead

Is the currency that a of cash when making

government has declared to purchases. It is similar to a

be legal tender, credit card, but unlike a

but it is not backed by credit card, the money

a physical commodity. comes directly from the

user's bank account when

Inside Money performing a transaction

Non Electric Payments

Even though e-money is now Credit Card

building up its popularity in The card issuer (usually a bank)

the payment system ; creates a revolving account and grants

still constitute the universal a line of credit to the cardholder, from

media of exchange. which the cardholder can borrow

money for payment to a merchant or as

a cash advance.
Electronic Payments

E-money is a new trend

of payment system.

Using it requires less effort,

Finance
yet it is still open to
Is the study of how individuals ,
fraud and security lopses.
institutions governments and

businesses acquires to spend

Automated Bill Payments
and manage money and other
People cooperate w/ financial
financial assets.
institutions to pay their bills.

This organizations will

Business Finance
automatically deduct the amount
The management of assets and
of payment from the said
money is crucial for any businesses.
person’s bank account.
Its primary focus is to increase profit

and minimize financial risk.

E-Cash

Buyers only need to

Financial Management
cooperate with the bank to
Involves financial planning,
have e-cash transferred
asset management and fund
into their PC and their cellphones.
raising decisions to enhance

the value of business.

Stored Value Card

It allows the order to

Shareholder’s Wealth Maximization
prepay on amount
Stocks
of money to have
The general term used to describe
good services in return
the ownership certificates

of ANY company.
 3.Financial Instruments

Shares These are assets belonging to

Refers to the ownership a person or company. This can

certificates of a PARTICULAR company. include cash, bonds, or other

assets; such as property

Dividends or items of value.

Is a payment made by a corporation

to its shareholders, usually as

distribution of profits. 4. Financial Services

These are offered by financial

Net worth institutions. These include such

Is the value of all financial and things as banking, insurance policies,

non- financial assets owned by loans and mortgages, as well as pensions.

an individual, institutional unit

or sector minus the value of all its 5. Financial Practice

outstanding liabilities.
A sort of guideline around

how the financial institutions

Stakeholder
should operate their services.
Is a person or group organization

that has interest or concern in an

organization. 6. Financial Transactions

These are the actual exchange

of cash or assets for goods

THE PHILIPPINE FINANCIAL SYSTEM
or services – paying for
A financial system is the system
a new car, or a loan, for instance.
that covers financial transactions

and the exchange of funds

between investors, lender and borrowers.

These six elements work

together to create a healthy

The term financial system is a
financial system, which in turn
term used in finance to
builds a strong economy. No one
describe the system
element is more important than
that allows money to go
the others – they simply
between savers and borrowers.
represent different mechanisms

within the system that allows

The Six Elements of Financial System
P;it to function.

1. Financial Institutions

These are organizations

that offer financial services.

2. Financial Market

The system that allows people

to buy and sell goods

and services to each other