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I.

INTRODUCTION

Finance is the soul of our economic activities. To perform any economic activity, we need certain resources, which are to be pooled in terms of money. Finance is concerned with cash. It is so, since, every business transaction involves cash directly and is an indicator of growth and good returns. This is possible only with the good analytical decision of the organization. However, the decision shall be framed by giving more emphasis on the present and future perspective. Finance is very important if we run our own firm. Here we need to efficiently manage our resources and know what risks are worth taking. Further we need to know how to invest and how to raise money. Even if you never plan on owning your own business, Finance is still important to you. Finance teaches us to understand the other side of every transaction and if you understand what your employer wants, it is easier to achieve this and hence you are in a better position for raises and promotions and because we do not want to have to worry about money.

II.KNOWLEDGE/ LEARNINGS ACQUIRED MONEY I learned about money thats why money has become so important for live that you could not survive without it and you could not even buy something to eat, now a days you need money for your life, for clothes, food, Shelter and even water. Money is the only means of exchange if you want something then it can fulfilled with the help of money and its very important to us it because money is one keys to our lives you can buy anything what you want and everything you use it to get thing you need to live and money help us to achieve our dreams and vision in life and this is also good for us on how to motives ourselves and how to manage overcome obstacles and money serve as a medium of exchange The History of money First, Barter was the primary medium of exchange. 500 BC: Modern coinage the first coin developed out of lumps of silver. 118 B.C: Leather money was used in china in the form of one-foot- square pieces of while deerskin with colorful boarders and this be considered the first documented type of banknote. A.D.800-900: The nose, 806: Paper currency the first known paper banknote appeared in china. 1500: Potlach was a form of initiation into secret tribal societies. 1535: Wampum which strings of beads made from clam shells then most likely, this monetary medium existed well before this date. 9000-6000 BC: Cattle, which throughout history and across the globe have included not only cows but also sheep, camels and other livestock, are the first oldest form of money.1200 BC: Cowrie shells this is the most widely and longest used currency in history. 100 BC: First metal money and coins extremely common for governments to assert that the value of such money lay in its emblem and thus to subsequently reduce the value of the currency by lowering the content of valuable metal. 1816: The gold Standard was officially enacted in 1900, which helped lead to the establishment of a central bank. 1930: End of the gold standard was revised and the price of gold was devalued and this was the first step in ending the relationship altogether. The present: this currency continues to change and developed. The

Future: electronic of money this transaction regularly takes place electronically, without the exchange of any physical currency. The importance of money 1. Money facilitate trade This means goods were exchange with other goods and services, or services with other services. 2. Money stimulates production These profits have further encouraged them to sell more and this has stimulated the production of more goods and services. 3. Money accelerates economic growth This simply means there are more buyers; eventually such accelerates economic activities lead to economic growth. Function of money 1. As a medium of exchange (buying something) serves as a specialized tool by which economic activities are fostered and promoted, smoothly and expeditiously. 2. As a unit of account (measurement of value) it is establish a common denominator or yardstick by which units of goods or services may be measured in terms of their exchange value. 3. As a standard of deferred payment (future payment upon maturity) used as a medium for fulfilling obligations of debtors to creditors on maturity.

The characteristics of good money. 1. GENERAL ACCEPTABILITY. 2. DURABILITY 3. PORTABILITY 4. DIVISIBILITY 5. STABILITYOF MONEY VALUE 6. COGNIZABILITY 7. MALLEABILITY I learn about general acceptability, which everyone will accept the money for buying goods and services. And then Durability that will be pass one to another is contain money with off different hands. Portability this is portable and if you have money you carried it anywhere. Divisibility-here in Philippines the monetary unit is peso and if you go to the other place the peso will become a dollar or that will be exchange a peso to a dollar. Stability of money value- the rate is exchange and stable. Cognizability it is the value of the money the color and design. Malleability this is an original and that will be printed many design, stamping design and it is capable on printing. Convertability, its convert a peso to a dollar.

Features of notes and coins 1. Denominations-includes the face value of each coin and paper bill. 2. Dimensions- these are sizes of coins and paper bills. 3. Design and Inscriptions-the graphics or text imprinted on each money. 4. Colors- variations in color of each denomination for easy recognition. 5. Weight- this includes the paper weight and metal of the alloy for coins. New generation Banknotes Security features (1)embossed prints, (2) serial number, (3) security fibers, (4) water mark, (5) seethrough mark,(6) concealed value, (security thread, (8) optically variable device, (9) optically variable ink Old banknotes Security features Watermark, embedded security thread, portrait, serial number, background/lacework design, micro printing, fluorescent printing, micro printing, serial number. Philippine coins 1 centavo coin, five centavo coin, 10 centavo coin, 25 centavo coin 1 peso coin, 5 peso coin, 10 peso coin

I learned about any kinds of money the bills and coins, Many differences of old bills and coins comparing the new ones their shapes color designs and values, the new money is better than the old money they differences in design and color.

Genuine and counterfeit detection of Philippine currency 1. Paper -water mark, security fiber, security thread 2. Printing-portrait, serial number, background/ lacework design, vignette, color, value panel 3. Special features-flourescent printing, micro printing, concealed value, optically variable ink.

I learn about the genuine and counterfeit this is use how to detect if it is fake or not and there are many different ways to produce fake banknotes. Basic methods such as printing scanned images of authentic notes will produce counterfeit that are relatively easy to spot some groups, however, take counterfeiting seriously and produce copies that increasingly the original. . BANKING Banking is an important in the lives of individuals. It is deal with an institution that provides business loans, credit, savings and checking accounts specifically for companies and not for individuals. Business banking is also known as commercial banking and occurs when a bank, or division of a bank, only deals with businesses. A bank that deals mainly with individuals is generally called a retail bank, while a bank that deals with capital markets is known as an investment bank. Classification of bank. According to ownership, according to structure, according function, according to management. Types of banks.

1. UNIVERSAL BANK OR EXPANDED COMMERCIAL BANK -offers the wide variety of banking services among financial institution. 2. COMMERCIAL BANKS -constitute the bulk of the banking system. 3. THRIFT BANKS -are banking institution organized primarily to encourage deposit. 4. RURAL BANK -they provide an important and effective means of completing the link of financial intermediaries into the rural bank. 5. COOPERATIVE BANK -organized to furnish the credit needs to duly registered and operating cooperative association of different kinds. 6. SPECIALIZED GOVERNMENT BANKS -controlled bank organized for specific purpose in accordance with their respective charter. 7. OFFSHORE BANKING UNITS OR OBUs -offshore banking unit is any branch

Banking laws 1. NEW CENTRAL BANK ACT. 2. GENERAL BANKING ACT

Other banking laws 1.THE THRIFT BANKS ACT OF 1995 2. COOPERATIVE CODE OF THE PHILIPPINES. 3. SAVINGS AND LOAN ASSOCIATION 4. R.A. 7721 The regulation of banks 1.BANGKO SENTRAL NG PILIPINAS. 2. PHILIPPINE DEPOSIT INSURANCE CORPORATION

3.SECURITY AND EXCHANGE COMMISION CREDIT I learn about credit. If you want to get a mortgage loan for a house or a student loan to pay for college, credit will make it more difficult for you and it will make it more expensive to borrow money for any purpose and its signify that your financial situation -and the rest of your life. I learn what about credit. Credit is the ability to obtain a thing of value in exchange for a promise to pay definite sum of money, on demand of future determinable time. Credit does not necessarily require money and the credit concept can be applied in barter economies as well, based on the direct exchange of goods and services. However, in modern societies credit is usually denominated by a unit of account. Unlike money, credit itself cannot act as a unit of account. It includes interest, arrangement fees and any other charges. Some costs are mandatory, required by the lender as an integral part of the credit agreement. Other costs, such as those for credit insurance, may be optional. The borrower chooses whether or not they are included as part of the agreement. The four characteristic of credit. 1. IT IS A BI-PARTITE or A TWO PARTY CONTRACT. 2. IT IS ELASTIC. 3. THE PRESURE OF TRUST AND FAITH. 4. IT INVOLVES FURTUNITY.

The seven foundation of credit. 1.CONFIDENCE. 2. PROPER FACILITIES. 3. CREDIT INFORMATION.

4. CREDIT DOCUMENT. 5. STABILITY OF MONEY STANDARD. 6. GOVERNMENT ASSISTANCE. 7. CREDIT RISK.

The five cs of credit. 1. CHARACTER -the personality of the debtors. 2. CAPACITY -persons willingness and capacity to pay 3.CAPITAL -the real and personal property. 4. COLLATERAL -the debtors assets as pledge. 5. CONDITION -these include local business condition for economic conditions or economic condition during of loan application. The characteristic of credit. ACCORDING TO TYPE OF USSER -credit consumer, commercial credit, commercial bank credit. ACCORDING TO PUPOSE -investment credit, agricultural credit, export credit, real estate loan, industrial credit. ACCORDING TO MATURITY -short-term loan, medium term loan, long-term loan. ACCORDING TO FORM OF CREDIT -credit form, merchandise form. Twelve source of credit.

PRIVATE INDIVIDUALS -the individual money lenders who loan surplus income to those in immediate needs of cash. RETAIL STORE -offers merchandise form of consumer credit. PAWNSHOPS - pawnbrokers extend loans in exchange for collateral, a pawn. SAVINGS AND MORTGAGE BANK -corporation. MUTUAL SAVINGS BANK -are mutually owned by the depositor and either pay out their out their profit to savers in interest dividends SAVINGS AND LOAN ASSOCIATIONS -organized to obtain fund for home construction. CREDIT UNION -are mutual institution whose membership has some common bond. INSURANCE COMPANIES -companies are both mutual and stockholder-owned. PENSION FUND -produce for pension fund is the reverse of that for insurance companies. BOND AND MONEY MARKET FUNDS -are companies which accept savings and place them in a pool for investment that allows diversification. SALE FINANCE COMPANIES -include sales and personal finance companies.).

Credit instruments -are promises or order to pay, a definite sum of money to bearer or order, on demand or at a future specified time. The four characteristic of credit instrument. One is PAYABLE TO BEARER (this instrument does not specify the payees name). PAYABLE TO ORDER -this instrument specifies the payees name.

PAYABLE ON DEMAND-instrument with the current date, like open check. PAYABLE AT A FUTURE TIMES -an instrument with a future times. Stocks-are permanent invested capital of a corporation contribute by the owners. Two kinds of stocks. COMMON STOCKS -are with voting right. PREFFERED STOCKS -are given preference to assets. Promissory notes written promise by a person, called: the MAKER, to another party. the PAYEE, to pay a definite sum of money. Kinds of checks. Open checks, crossed check, certified check, managers check or cashiers check, travellers check, overdraft check, bouncing check, stele-dated check, post-dated check. Five basics are on the face of checks. The date, the amount the drawer, the drawee, the payee. Endoresement the signature of the payee on the back of check. Kinds of endorsement. Special endorsement, black endorsement, restrictive endorsement, qualified endorsement.