INTRODUCTION TO

PHILIPPINE MONEY,

CREDIT, AND BANKING

Ruby F. Alminar-Mutya

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Publishing Inc.
 TABLE OF CONTENTS

PREFACE

PART 1: PHILIPPINE MONEY

Concept of Money
Functions of Money
Characteristics of Good Money
Importance of Money
Coinage
Kinds of Coinage
Types of Money
Commodity Money
Metallic Money
Paper Money
Coins
Classification« of Money
Legal Tender
Currency
Monetary System
Kinds of Monetary Standards
Characteristics of Philippine Currency
Philippine Numismatic History
Early Philippine Coins
Currency during the Spanish Occupation
Currency of the First Philippine Republic
Currency during the American Occupation
Currency of the Commonwealth Era
Currency during the Japanese Occupation
Currency of the Philippine Republic of 1946
New Bangko Sentral ng Pilipinas Coins
The New Generation Currency (NGC)
Design Highlights of Denominations
The Mint
Theories About Value of Money
Current Measures of Money
Functions of Finance
 INTRODUCTION TO PHILIPPINE MONEY, CREDIT, AND BANKING

Exchange Rates 58

Operations in Gold and Foreign Exchange 59

Government Debt 60
The Central Bank of the Philippines 61
The Bangko Sentral Ng Pilipinas 62
Exercises 67

PART 2: PHILIPPINE CREDIT SYSTEM

Nature of Credit 94
Characteristics of Credit 94
Foundations of Credit 95
Five C's of Credit 95
Classifications of Credit 96
Sources of Credit 97
Credit Instruments 99
Investment Credit Instruments 102
Commercial Credit Instruments 102
Negotiation and Endorsement 107
Kinds of Endorsement 108
Uses And Limitations of Check 111
Liabilities of General Endorser 111
Guidelines in Accepting Checks for Payment 112
Bank Draft and Bill of Exchange 112
Types of Bank Deposits 112
The Unpaid Seiler 114
Rights and Remedies of Creditor 115
Contract of Loan 116
Interest Payment 116
Pledge and Mortgage 116
Credit Insurance 116
Basic Requirements of an EfFective Financial System 118
Managing Credit Risk 120
Credit Qualities to Investigate 121
Sources of Credit Information 122
The Philippine Money Market 122
The Philippine Bond Market 123
Exercises 133

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 INTRODUCTION TO PHILIPPINE MONEY, CREDIT, AND BANKING

PART 3: PHILIPPINE BANKING SYSTEM

History of Philippine Banking 178

Banking 178
Banking Theories 182
Commercial Banks' Balance Sheet 182
Quantitative Instruments of Monetary Control 183
Qualitative Instruments of Monetary Control 183
Depository Institutions 184
Non-Depository Institutions 185
Other Financial Institutions 186
Functions of Commercial Banks 186
Collection Function 186
Paying Function 187
Loaning Function 187
Receiving Function 188
Trust Function 190
Exercises 209

References 231
Index 233

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