Kamis, 09 Februari 2017

TYPE OF MONEY



TYPE OF MONEY
Made in Order to Fulfill the Assignment University Subjects Bank and Financial Institutions



  
Lecturer:
Irvan Yoga Pardistya, SE., MM., Ak

By:
Lydia Nur Athifah
1610631030167
                                   


ACCOUNTING
FACULTY OF ECONOMICS AND BUSINESS
UNIVERSITY OF SINGAPERBANGSA KARAWANG


2017





PREFACE

Alhamdulillah with permission of Allah SWT I can finish this assignment. Sorry if there is a mistakes and is not perfect, because perfection belongs only to Allah SWT.
Hopefully in the next assignment would be better than this and fix the mistakes earlier.




Karawang, 9th February 2017


Lydia Nur Athifah





TABLE OF CONTENTS


PREFACE........................................................................................................
TABLE OF CONTENTS.................................................................................

  1. BANKNOTES........................................................................................
  2. COINAGE..............................................................................................
  3. CREDIT CARD...................................................................................
  4. STOCK ..................................................................................................
  5. BOND....................................................................................................
  6. CHEQUE...............................................................................................
  7. BILYET GIRO………………………………………………………..
  8. INSURANCE........................................................................................

REFERENCES ...............................................................................................






  1. Banknotes         
A banknote (often known as a bill, paper money, or simply a note) is a type of negotiable instrument known as a promissory note, made by a bank, payable to the bearer on demand. Banknotes were originally issued by commercial banks, who were legally required to redeem the notes for legal tender (usually gold or silver coin) when presented to the chief cashier of the originating bank. These commercial banknotes only traded at face value in the market served by the issuing bank.

  1. Coinage
A coin is a small, flat, round piece of metal or plastic used primarily as a medium of exchange or legal tender. They are standardized in weight, and produced in large quantities at a mint in order to facilitate trade. They are most often issued by a government.
The size of the security of the mould coins is different with banknotes which have many features. Security aspects printing of coinage in priciple many more determined by the quality of materials, complexity of the design and printing sharpness. 

  1. Credit Card
A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services, based on the cardholder's promise to the card issuer to pay them for the amounts so paid plus other agreed charges. The card issuer (usually a bank) creates a revolving account and grants a line of credit to the cardholder, from which the cardholder can borrow money for payment to a merchant or as a cash advance.
A credit card is different from a charge card, where it requires the balance to be repaid in full each month. In contrast, credit cards allow the consumers a continuing balance of debt, subject to interest being charged. A credit card also differs from a cash card, which can be used like currency by the owner of the card. A credit card differs from a charge card also in that a credit card typically involves a third-party entity that pays the seller and is reimbursed by the buyer, whereas a charge card simply defers payment by the buyer until a later date.

Types Of Credit Card
  • Business credit cards 
          Business credit cards are specialized credit cards issued in the name of a registered business, and typically they can only be used for business purposes.
  • Secured credit card
       A secured credit card is a type of credit card secured by a deposit account owned by the cardholder.
  • Digital cards
          A digital card is a digital cloud-hosted virtual representation of any kind of identification card or payment card, such as a credit card.

  1. Stock
A stock is a measure of ownership in a company. Stock is sold in units called shares, each of which represents a bit of the company. Most major companies have literally millions of shares divided up among different people and financial institutions, all of which are collectively called shareholders.
There are two main types of stock: common and preferred. Common stock usually entitles the owner to vote at shareholders' meetings and to receive dividends. Preferred stock generally does not have voting rights, but has a higher claim on assets and earnings than the common shares. 

  1. Bond
In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. The most common types of bonds include municipal bonds and corporate bonds. It is a debt security, under which the issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay them interest (the coupon) and/or to repay the principal at a later date, termed the maturity date.

  1. ChEQUE
A cheque is a written, dated and signed instrument that contains an unconditional order from the drawer that directs a bank to pay a definite sum of money to a payee. The money is drawn from a banking account, also known as a checking account.

Type Of Cheque
  • Self cheque
    When you want to withdraw cash, you make out a cheque to ‘Self’. This is known as a self cheque. This means that the cash will be paid to the account-holder. In practice, the bank will give cash to the person who brings the cheque. The words ‘…or bearer’ should not be crossed out. Also, you should put the NGO’s stamp and sign on the reverse of the cheque.
  • Bearer cheque
     A bearer cheque can be paid to the person who brings the cheque to the bank. For example, the cheque shown below can be paid to Mr. T. K. Biswas or to the person who ‘bears’ the cheque to the bank.
  • Crossed cheque
     A cheque with two small parallel lines is a crossed cheque. You cannot encash such a cheque across the counter. It will only be credited to a bank account. Such a cheque has to go through clearing.
  • Backward cheque
      Is a check that is dated backwards from the current date.
  • Blank cheque
Are checks that the funds are not available in a checking account
  • Dating the cheque
A cheque can not be paid before the date which is put on it. Also the cheque is usable only for six months from its date.

  1. Bilyet Giro
Giro is a warrant from the customer to the bank that maintains the current account customers, to transfer a sum of money from the account in question to the named recipient or account number in the same bank or another bank.

Equation Cheque and Giro
  1. Equally a means of payment demand deposits.
  2. Have the same expiration period is 70 days.
  3. Either check or bank draft, both can be used as the calculation of the clearing house.
  4. Both nature or an order to the bank to carry mutations in payments to customers.

  1. Insurance
Insurance is a term used to refer to the actions, systems, or business where financial protection (or compensation financially) to life, property, health and so forth get reimbursement of events that can not be predicted to occur as death, loss, damage or illness, which involves the payment of premiums on a regular basis within a specified period in exchange for a policy that ensures such protection.

Principle Insurance
  • Insurable interest
    Insurable interest is a person’s legally recognised relationship to the subject matter of insurance that gives them the right to effect insurance on it. Since the relationship must be a legal one, a thief in possession of stolen goods does not have the right to insure them.
  • Utmost good faith
    Insurance is subject to a more stringent common law principle of good faith, often called the principle of utmost good faith. It means that each party is under a duty to reveal all vital information (called material facts) to the other party, whether or not that other party asks for it.
  • Indemnity
    Indemnity means an exact financial compensation for an insured loss, no more no less.
  • Contribution
   Insurers which have similar obligations to the insured contribute in the indemnification, according to some method.
  • Subrogation
          Subrogation is the exercise, for one’s own benefit, of rights or remedies possessed by another against third parties. As a corollary (i.e. a natural consequence of an established principle) of Indemnity, subrogation allows proceeds of claim against third party be passed to insurers, to the extent of their insurance payments. At common law, an insurer’s subrogation action must be conducted in the name of the insured.
  • Causa proxima, or proximate cause
    The cause of loss (the peril) must be covered under the insuring agreement of the policy, and the dominant cause must not be excluded

Functions And Benefits Of Insurance
Insurance has many functions and benefits, some of which we may describe as primary and others as ancillary or secondary, as follows :
a)     Primary functions/benefits: Insurance is essentially a risk transfer mechanism, removing, for a premium, the potential financial loss from the individual and placing it upon the insurer. The primary benefit is seen in the financial compensation made available to insured victims of the various insured events. On the commercial side, this enables businesses to survive major fires, liabilities, etc. From a personal point of view, the money is of great help in times of tragedy (life insurance) or other times of need.
b)   Ancillary functions/benefits: Insurance contributes to society directly or indirectly in many different ways. 

These will include :
  1. Employment: the insurance industry is a significant factor in the local workforce; 
  2. Financial services: since the relative decline in manufacturing in Hong Kong, financial services have assumed a much greater role in the local economy, insurance being a major element in the financial services sector; 
  3.  Loss prevention and loss reduction (collectively referred to as ‘loss control’): the practice of insurance includes various surveys and inspections related to risk management. These are followed by requirements (conditions for acceptance of risk) and/or recommendations to improve the ‘risk’. As a consequence, we may say that there are fewer fires, accidents and other unwanted happenings;
  4. Savings/investments: life insurance, particularly, offers a convenient and effective way of providing for the future. With the introduction of the Mandatory Provident Fund Schemes in 2000, the value of insurance products in providing for the welfare of people in old age or family tragedy is very evident; 
  5. Economic growth/development: it will be obvious that few people would venture their capital on costly projects without the protection of insurance (in most cases, bank financing will just not be available without insurance cover). Thus, developments of every kind, from erection of bridges to building construction and a host of other projects, are encouraged and made possible partly because insurance is available.





REFERENCES
  • Atack, Jeremy; Passell, Peter (1994). A New Economic View of American History. New York: W.W. Norton and Co. In Wikipedia https://en.wikipedia.org/wiki/Banknote#cite_note-2 on Thu, Feb. 9th 2017 11.14 PM.
  • https://en.m.wikipedia.org/wiki/Coin. on Thu, Feb. 9th 2017 11.20 PM.
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  • O'Sullivan, Arthur; Steven M. Sheffrin (2003). Economics: Principles in action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. In https://en.m.wikipedia.org/wiki/Credit_card on Thu, February 9th 2017. 11.30 PM.
  • Schneider, Gary (2010). Electronic Commerce. Cambridge: Course Technology. In https://en.m.wikipedia.org/wiki/Credit_card on Thu, February 9th 2017. 11.30 PM.
  • Kerry, Teresa Heinz. What Women Need to Know About Retirement. In https://www.google.co.id/url?sa=t&source=web&rct=j&url=https://www.wiserwomen.org/pdf_files/ebook/chapterthree.pdf&ved=0ahUKEwiOsYCMvoLSAhUIOY8KHfDyChIQFggfMAM&usg=AFQjCNEFVksHv4u38-cvEpVMXlE9RDS9ig on Thu, February 9th 2017. 14.38 PM
  • http://www.investopedia.com/terms/s/stock.asp. on Thu, February 9th 2017. 11.49 PM
  • O'Sullivan, Arthur; Sheffrin, Steven M. (2003). Economics: Principles in action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. In https://en.m.wikipedia.org/wiki/Bond_(finance) on Thu, February 9th 2017. 12.56 PM.
  • http://www.kuliah.info/2015/05/pengertian-persamaan-perbedaan-cek-dan.html?m=1 on Thu, February 9th 2017. 12.46 PM
  • https://en.m.wikipedia.org/wiki/Insurance on Thu, February 9th 2017  13.54 PM
  • Insurance Intermediaries Quality Assurance Scheme (5th ed).Office of the Commissioner of Insurance. In https://www.google.co.id/url?sa=t&source=web&rct=j&url=http://www.oci.gov.hk/download/sn-p%26p-2013.pdf&ved=0ahUKEwjw4rvqtYLSAhWBsI8KHQChAXYQFggZMAA&usg=AFQjCNHiq-Q2eub4lR65tTv1bxinrTUkuw. On Thu, February 9th 2017. 14.05 PM.
 
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