Assignment in Financial Management

Submitted by: Parco, Alexis-Oliver S.

1. What is Money?

- Money is a medium of exchange in which prices and values are expressed; as

currency, it circulates anonymously from person to person and country to country,

thus facilitating trade, and it is the principal measure of wealth.

2. What are the functions of Money?

a. Medium of Exchange

b. Unit of Account

c. Store of Value

d. Standard of deferred payment

3. What are the 5 parts of the Financial System?

a. Money

b. Financial Instruments

c. Financial Services

d. Financial Institutions

e. Central Banks
4. What are the 5 characteristics of money?

a. Durability

b. Divisibility

c. Transportability/ Portability

d. Uniformity

e. Limited Supply

5. Why do you need Money?

- Money is needed because it provides a standard of fair exchanges of values. Material

possessions, necessities and services all have their each differing value. Due to this

the monetary system provides a way to be able to represent a value and have an ease

of exchange or trade. This becomes a more efficient process in the exchange of

goods.