Course: Macroeconomics

Prepared By: Shafaq Umm e Hani

Instructor: Ma’am Sidra Inaam
BBA 4th Semester, Morning

N AT I O N A L U N I V E R S I T Y O F M O D E R N
LANGUAGES, KARACHI CAMPUS.
“MONEY”
DEFINITION
The word money is derived from the Latin word MONETA ,Money is any good that is
widely used and accepted in transactions involving the transfer of goods and services from
one person to another.

1. The U.S Dollar

2. The Euro

3. The Japanese Yen

4. The British Pound

5. The Canadian Dollar

6. The Swiss Franc

FUNCTIONS OF MONEY
PRIMARY FUNCTIONS
Medium of Exchange
Unit of Account
Standard of Deferred Payments
Store of Values
SECONDARY FUNCTIONS
Aid to Production
Money Facilitates to FOP
Tool of Monetary Management
Instrument of Making Loan
TYPES OF MONEY
1. Commodity Money
2. Metallic Money
3. Paper Money
4. Bank Money
5. Electronic Money
6. Near Money
COMMODITY MONEY
When different commodities were used as the medium of
exchange.
Exchange of goods for goods was known as ‘Barter Exchange’.
METALLIC MONEY
With progress of human civilization, commodity money changed
into metallic money. Metals like gold, silver, copper, etc. were used.
It exists in the form of coins.
1. Full bodied coins
2. Token money
 PAPER MONEY
Paper money is made up of paper and is regulated and controlled by Central
bank of the country.
1. Representative Money
2. Convertible Money
3. Inconvertible Money
BANK MONEY
Bank money refers to the funds held in accounts in commercial banks.
These account balances are usually considered money and form the greater
part of the money supply of a country.
ELECTRONIC MONEY
The latest type of money is electronic money in the form of Credit cards
and Debit cards. They aim at removing the need for carrying cash to make
transactions.
NEAR MONEY
A type of money which can easily be converted
into money.
CHARACTERISTICS
General Acceptability
Portability
Durability
Divisibility
CONTINUE..

Homogeneity
Stability
Recognizability