Presented by: Irfan Hameed

PhD Program
Presented to: Dr. Muzzafar Issani
Philosophy of Social Thought
What is Money?

Any object that is portable, divisible,
durable and stable and that serves as a
medium of exchange, a store of value and
a unit of account

What is Money (Cont)
Characteristics of
Money
Portability
Divisibility
Durability
Stability

Functions of Money
Medium of Exchange
Store of Value
Unit of Account
BARTER
The first people didn't buy goods from other people
with money. They used barter. Barter is the exchange
of personal possessions of value for other goods that
you want. From 9,000-6,000 B.C., For example, I
could ask another farmer to trade a pound of apples
for a pound of bananas.
Shells

At about 1200 B.C. in China, cowry shells became the
first medium of exchange, or money. The cowry has
served as money throughout history even to the
middle of this century.
First Metal Money

China, in 1,000 B.C.,
They can be thought of as the original development of
metal currency. In addition, tools made of metal, like
knives and spades, were also
used in China as money.
Silver
At about 500 B.C.,
Pieces of silver were the earliest coins.
Not like Chinese coins, which relied on base metals,
these new coins were composed from scarce metals
such as bronze, gold, and silver, which had a lot of
intrinsic value.
Leather Currency
In 118 B.C., banknotes in the form of leather money
were used in China. One-foot square pieces of white
deerskin edged in vivid colors were exchanged for
goods. This is believed to be the beginning of a kind
of paper money.
Paper Currency
From the ninth century to the fifteenth century A.D.,
in China, the first actual paper currency was used as
money. Through this period the amount of currency
skyrocketed causing severe inflation.
Gold Standard
In 1816, England made gold a benchmark of value.
This meant that the value of currency was pegged to a
certain number of ounces of gold. This would help to
prevent inflation of currency. The U.S. went on the
gold standard in 1900.

> Representative Money
> Fiat Money
Evolution Origin of Banking
Money lenders
Merchants
Gold smiths
The bank of Venice in 1157 followed by these banks as
under:
Bank of Barcelona 1401
Bank of Genoa (Italy) in 1407
Bank of Amsterdam in 1609

Banking
Banking History of England

During the era of King Charles James II (1660-1685), in
1694 to financially help bail out King Charles III (1689-
1702).
Later it became the Central bank of England, and in
1946 it was nationalized.
Banking History of the USA


In the U.S in 1791 Alexander Hamilton founded Bank
of United States that was wound up in 1811. The bank
was revived in 1816 only for 20 years.

Banking History of India
The first Bank in the indo-Pak subcontinent came into
existence in 1809.
In 1935 Reserve Bank of India was established as a
Central bank.
Habib Bank in Bombay in 1941 and Muslims
Commercial Bank in Calcutta in 1947 were founded.

Banking History of Pakistan

Pakistan, banking sector
Habib Bank in 1947 (Karachi)
Muslim Commercial Bank in 1948 (Chittagong)
State Bank of Pakistan
In July, 1974 all commercial bank were nationalized,
and in August, 1991 their privatization started. In the
late 80s private sector banking was allowed.
in July 1948.
Currency in Circulation
Denomination No. in Millions Amount in Billion (Rs.)
Rs 5 261.85 1.309
Rs 10 261.832 2.618
Rs 20 73.206 1.464
Rs 50 56.533 2.827
Rs 100 51.202 5.12
Rs 500 13.25 6.625
Rs1000 17.231 17.231
Rs5000 2.564 12.822
TOTAL 737.668 50.016
Thank you
for your patience
Questions and thoughts