OLIVAREZ COLLEGE

DR. PABLO R. OLIVAREZ – SENIOR HIGH SCHOOL

ABM 004: Business Finance
Module No. _1

I. OUTCOMES OF LEARNING

 Shows understanding of the history of Philippine currency & Philippine monetary standards.
 Identify the role of money in our economic system.
 Define finance and its branches.
 Determine the people involved in the financial activities within an organization.

II. LESSON PRESENTATION

The History of Philippine Money where barter system is an old method of exchange. This
system has been used for centuries and long before money was invented. People exchanged services and
goods for other services and goods in return. Barter has its own failure one is lack of double coincidence of
wants, second is lack of store value and lastly lack of common measure value.

PILONCITOS (bulawan) The first local form of coinage in the

Philippines, derived from “Pilon”- an old sugar container which is said to
have the same appearance. Piloncitos are so small with an average size
of a corn kernel.
Source: https://en.wikipedia.org/wiki/Piloncitos

PENNIFORM GOLD BARTER RINGS discovered by Dr. Gilbert Perez,

barter rings are made from pure gold and were also used as
accessories. These were also used in trading with the Chinese and other
neighboring countries.

Source: https://www.yavkino.club/penniform-gold-barter-rings.html

MACUQUINAS these are irregularly-shaped coins hammered in Spain

and Spanish-America. These were the earliest coins brought in by the
galleons from Mexico. Also known as cobs, real, real de a ocho, Spanish
dollar.

Source: https://www.picuki.com/tag/Macuquinas

SPANISH BARILLA these were the first crude copper or bronze coins
locally produced in the Philippines in accordance with the Spanish
government order. The Filipino term “barya,” referring to small change,
had its origin in barilla.

Source: http://pinoykollektor.blogspot.com/2015/08/barrilla-first-philippine-coin-during.html

LESSON 1: Role of Money 1

OLIVAREZ COLLEGE
DR. PABLO R. OLIVAREZ – SENIOR HIGH SCHOOL
ABM 004: Business Finance
Module No. _1

PESOS FUERTES were

the first paper money
circulated in the
Philippines. They were
issued by the country’s
first bank, the El Banco
Español Filipino de Isabela
II.

Source: https://en.wikipedia.org/wiki/Philippine_peso_fuerte

REVOLUTIONARY
BANKNOTES also known
as Papel Moneda,
Revolutionary Banknotes
were used after the
Spanish colonial. General
Emilio Aguinaldo was
vested with the authority to produce currencies under the Malolos
Constitution of 1898.

Source: https://esuperanza.weebly.com/banknotes.html

AMERICAN BASED
MONEY the US Congress
approved the Coinage Act
for the Philippines in 1903,
declaring that the
monetary system in the
Philippines was based on
the American dollars.

Source: https://www.banknotes.com/us530.htm

JAPANESE MONEY (Mickey Mouse Money) During the Japanese

occupation, the government issued fiat money known as the Japanese
government issued Philippine fiat peso or Japanese peso.

Source: https://wwiiafterwwii.wordpress.com/2018/11/18/philippines-pt-1-mickey-mouse-money-after-wwii/

EMERGENCY CIRCULATING NOTES these were currency printed by

the Philippine Commonwealth Government in exile during World War II.
These "guerrilla pesos" were printed by local government units and

LESSON 1: Role of Money 2

OLIVAREZ COLLEGE
DR. PABLO R. OLIVAREZ – SENIOR HIGH SCHOOL
ABM 004: Business Finance
Module No. _1

banks using crude inks and materials. Due to the inferior quality of
these bills, they were easily mutilated.
Source: https://en.wikipedia.org/wiki/Emergency_circulating_notes

The Philippine Republic (Ang Bagong Lipunan) with the

establishment of the Central Bank of the Philippines in 1949, the first
currencies issued were the English series notes. The Filipinization of the
Republic coins and paper money began in the late 60's and is carried
through to the present.

Source: https://en.wikipedia.org/wiki/Banknotes_of_the_Philippine_peso

The Role of Money in economic system as money as medium of exchange, standard measure of goods,
services and as a store of value saving and investing. Finance presented in two different ways depending on the
perspectives on its use. “To finance” would mean to provide funding for example in the form of a loan or borrowed
money with the intent collecting the money back after a specific period of time.
Finance is derived from the latin word finer meaning “to end” or to pay”. Allocation means determining where to
use funds currently available to the firm. Acquisition means obtaining funds from the right sources at the right
time.

Branches of Finance

Source: https://present5.com/course-outline-course-bba-bf-i-instructor-andrei-zaporozhetz/

1. Public finance deals with the collection of taxes and budget allocation for programs designed to benefit the
general public and the production of public goods.
2. Personal finance encompasses everything that pertains to personal financial planning.
3. Corporate finance is primarily concerned with the management of all financial activities of an enterprise or a
business organization.

Classification of Finance
A. As to form of negotiation
1. Direct Finance is finance involved in direct borrowing
2. Indirect Finance involves financial intermediaries in the real sense of the word.

B. As to user
1. Public Finance deals with the revenue and expenditure patterns of the government
2. Private Finance
- Personal finance

LESSON 1: Role of Money 3

OLIVAREZ COLLEGE
DR. PABLO R. OLIVAREZ – SENIOR HIGH SCHOOL
ABM 004: Business Finance
Module No. _1

- Finance of non-profit
- Business finance

The accounting supervisor is tasked to prepare a cost and benefit analysis on whether it is more costly to
purchase or rent a piece of equipment. The marketing manager meets with the finance officer to discuss how a
new product should be priced before it is launched in the market. The human resources manager shows the other
members of the management team how the hiring of additional manpower will help with the productivity but may
also impact cost and profitability.
Logistics requested a new vehicle that will be used for delivery. However, the finance officer stated that the
benefits of purchasing a new vehicle will not be enough to justify the amount to be spent. The marketing officer
was advised that the budget for advertising and promotion is not enough to include billboard advertising.

Corporate finance may be categorized into four interrelated areas;

Financial Markets and Institutions this area covers banks, insurance companies, finance companies and other
financial intermediaries.
Investments this area focuses on investment options and decisions made by both individual and corporate
investors.
Financial services this area refers to services offered by organizations whose line of business is to help individuals
and other organizations manage money.
Managerial (Business Finance) this is area that will be the core focus of this module which is cash flows, how to
finance the acquisition, financing options to access when the supply of cash is deficient, what to do with the firm’s
excess cash and optimal inventory level.

Primary Goals
Increasing value of business growth and stability are the primary bases in measuring the value of a business
entity.
Social Responsibility of Businessman refers to his contributions to the improvement of the quality of life in the
community.

Procurements of funds
Capital must be made available at least cost when it is needed. The procurement function requires awareness of the
different sources of funds and the cost involved.
Cost of Capital varies with the sources thereof. On borrowed funds, it is in the form of financing charges, (interest,
commissions, and services-charges)

Text Book: (2017 Diwa Learning Systems Inc.)

(Unlimited books library services and publishing Inc)

I
III. NTERACTIVE DISCUSSION QUESTIONS

1. What is the relationship between the branches of finance?

2. What is the importance of finance in a business organization?
3. Which of the following branches of finance did you prefer in a business organization? why?

LESSON 1: Role of Money 4

OLIVAREZ COLLEGE
DR. PABLO R. OLIVAREZ – SENIOR HIGH SCHOOL
ABM 004: Business Finance
Module No. _1

IV. VALUES REFLECTION

You are the finance manager for a small firm that manufactures slippers, sandals and shoes. The
owners of the business asked for your opinion on how to save money in effect increasing profits
without sacrificing quality. What is your opinion to this matter and why?

V. ACTIVITY ENGAGEMENT

Direction: Collaborate with your assigned partner make a Mini portfolio about the history of money at least
(5). Take a picture of your written mini portfolio or soft copy must be submitted in this Gmail account
ramoshaira65@gmail.com

Rubric:

PAIR ACTIVITY pai

Business Finance 12
Mini Portfolio
Module 1 Role of Money
NAME:

10pts 9-8pts 7-6pts 5pts

Content The history of money is The history of money is Other references are not The content is not clear. /10
detailed. not well detailed. related with the history
of money.
5pts 4-3pts 2pts 1pt /5
Creativity The content shows The content shows bit of Other important part of The content doesn’t
designs and graphics graphics and designs. the content doesn’t have have graphics nor
provided. graphics. designs.
TOTAL SCORE /15

TECHNOLOGY INTEGRATION EVALUATION TOOL

Direction: The evaluation table below corresponds to the tool that a student’s have to his/her
classroom/school/home. Check the scale on left side of the table.
Scale: 1 – YES 2 - NONE
CLASSROOM /SCHOOL/HOME SCALE
TECHNOLOGY INTEGRATION EVALUATION
Standards/Indicators 1 2
1. Do you have laptop/tablet at home?
2. Do you have internet access?
3. Do you have smart phone?

LESSON 1: Role of Money 5

OLIVAREZ COLLEGE
DR. PABLO R. OLIVAREZ – SENIOR HIGH SCHOOL
ABM 004: Business Finance
Module No. _1

4. Did you share gadgets in your siblings for online/offline class?

5.
6.
7.
8.
9.
10.
(Upon having it checked by the teacher, students may utilize the said tool in actual evaluation of technology
integration
in the classroom or in the school.)

VI. RESEARCH EXPLORATION

Direction: Analyze the function of money in modern economic system. You may download the full paper of this
research on the website given below.

Source: https://www.kullabs.com/classes/subjects/units/lessons/notes/note-detail/7581

Function of money in modern economic system

Ponnusamy, Sundaram (2015)
Money is one of the fundamental inventions of mankind. It has become so important that the modern economy is
described as the money economy. The modern economy cannot work without money. Even in the early stages of
economic development, the need for exchange arose. At first, the family or village was a self-sufficient unit. But later
on, with the development of agriculture and application of the division of labor—that is, the division of the society
into agriculturists, carpenters, merchants, and so on—the need for exchange arose. Exchange took place first in the
form of barter. Barter is the direct exchange of goods for goods. Barter is a system of trading without the use of
money.
(Source: Ponnusamy, Sundaram (2015) Functions of money in the modern economic system Retrieved from https://owlcation.com/social-sciences/Functions-of-Money-in-
Modern-Economic-System)

Analysis: As a citizen we know money is important in the midst of economic but in the current situation we are in the
pandemic, as a youth what can you suggest to make money be more sustainable for the economic stability?
_______________________________________________________________________________________________
_______________________________________________________________________________________________

LESSON 1: Role of Money 6

OLIVAREZ COLLEGE
DR. PABLO R. OLIVAREZ – SENIOR HIGH SCHOOL
ABM 004: Business Finance
Module No. _1

_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________

Implication: In the midst of pandemic small and big businesses is the one who had been affected by the economic
loss, if you have that small or big businesses what are the common factors that you need to do to make your
business survive?
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________

I
VII. NTEGRATION PROCESS AND SYNTHESIS

> The history of Philippine Money where barter system is an old method of exchange. This system has been used for
centuries and long before money was invented. People exchanged services and goods for other services and goods in
return. Barter has its own failure one is lack of double coincidence of wants, second is lack of store value and lastly
lack of common measure value.
> History of Money in the Philippines are Piloncitos, Penniform Gold Barter Rings, Macuquinas, Spanish Barilla,
Peso Fuertes, Revolutionary Banknotes, American Based Money, Japanese Money (Mickey Mouse Money) and
emergency circulating notes.
>Finance is derived from the latin word finer meaning “to end” or to pay”
> Branches of Finance are public, personal and corporate finance.

Direction: Write below the brief history of money.

VIII. ASSESSMENT OF LEARNING

I. MULTIPLE CHOICE

LESSON 1: Role of Money 7

OLIVAREZ COLLEGE
DR. PABLO R. OLIVAREZ – SENIOR HIGH SCHOOL
ABM 004: Business Finance
Module No. _1

Direction: Read and analyze each item carefully. Choose the letter of the best answer.

1. Which is the study of the acquisition and investment of cash for the purpose of enhancing value or welath?
A. Allocation C. Acquisition
B. Finance D. Capital

2. Which of the following refres to growth may be measured in terms of increase in assets that appreciate in value,
improved production capacity accompanied by increase of sales?
A. corporation of stockholders
B.. owners equity and development
C. increasing the value of a business
D. social responsibility of the businessman

3. What is the Filipinization of the Republic coins and paper money began in the late 60's and is carried through to
the present?
A. The Philippine Republic C. Japanese Money
B. Pesos Fuertes D. Spanish Barilla

4. This is the branch of finance that maximize shareholder value through sound financial
planning.
A. personal C. public
B. corporate D. investments

5. These include banks, insurance companies, farms and etc. It pertains to how money should be managed in order
to achieve goals.
A. investments C. inventory
B. managerial finance D. financial services

II. VENN DIAGRAM

LESSON 1: Role of Money 8

OLIVAREZ COLLEGE
DR. PABLO R. OLIVAREZ – SENIOR HIGH SCHOOL
ABM 004: Business Finance
Module No. _1

Direction: Write the similarities and differences of the branches of finance in the three circle Venn diagram below.

Public Finance Personal Finance

Similarities of
Public and personal finance

Similarities of all

LESSON 1: Role of Money 9

OLIVAREZ COLLEGE
DR. PABLO R. OLIVAREZ – SENIOR HIGH SCHOOL
ABM 004: Business Finance
Module No. _1

Rubric:

Similarities of
Public and corporate finance Similarities of
Personal and corporate finance

Corporate Finance

Rubric at the back,

INDIVIDUAL ACTIVITY
Business Finance 12
Title: Venn Diagram of the branches of finance SCORE
Module 1 Role of Money
NAME:

5pts 4-3pts 2pts 1pt

Similarities Student includes all of the Student includes only (1) to Student includes only (1) Student includes no /5
similarities of the branches (2) similarities of the similarity of the branches of similarities between the
of finance. branches of finance. finance. branches of finance.
5pts 4-3pts 2pts 1pt /5
Differences Student includes all of the Student includes only (1) to Student includes only (1) Student includes no
differences of the branches (2) differences of the difference of the branches differences between the
of finance. branches of finance. of finance. branches of finance.
TOTAL SCORE /10

Rubric:

LESSON 1: Role of Money 10

OLIVAREZ COLLEGE
DR. PABLO R. OLIVAREZ – SENIOR HIGH SCHOOL
ABM 004: Business Finance
Module No. _1

IX. NETWORK LINKS, DIGITAL SOURCES AND REFERENCES

Network
Schoology
Web Sources

https://en.wikipedia.org/wiki/Piloncitos

https://www.yavkino.club/penniform-gold-barter-rings.html

https://www.picuki.com/tag/Macuquinas

http://pinoykollektor.blogspot.com/2015/08/barrilla-first-philippine-coin-during.html

https://en.wikipedia.org/wiki/Philippine_peso_fuerte

https://esuperanza.weebly.com/banknotes.htm

https://www.banknotes.com/us530.htm

https://wwiiafterwwii.wordpress.com/2018/11/18/philippines-pt-1-mickey-mouse-money-after-wwii/

https://en.wikipedia.org/wiki/Emergency_circulating_notes

https://en.wikipedia.org/wiki/Banknotes_of_the_Philippine_peso

https://present5.com/course-outline-course-bba-bf-i-instructor-andrei-zaporozhetz/

https://www.kullabs.com/classes/subjects/units/lessons/notes/note-detail/7581

(Source: Ponnusamy, Sundaram (2015) Functions of money in the modern economic system Retrieved from https://owlcation.com/social-sciences/Functions-of-Money-in-
Modern-Economic-System

Text Book

Flores, Marivic F. (2016). Business Finance for Senior High School. Manila: Unlimited Books Library
Services & Publishing Inc.
Gamatero, Albert N. (2017). DIWA Senior High School Series: Business Finance. Makati: DIWA
Learning Systems Inc.
Yumang, Kenneth L., Tyrone Panzer Chan Pao, Patricia Pefianco-Benito (2016). Exploring Small Business
and Personal Finance. Quezon City: The Phoenix Publishing House Inc.

Answer Sheet:

I. Multiple Choice

1. B

2. C

3. A

4. B

5. D

LESSON 1: Role of Money 11