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Money and Banking - PDST

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					Money and Banking
Forms of Money

• Barter
  – exchanging one product for
  another
• Gold and silver
  – minted into coins
• Paper money
  – initially used as receipts for
  silver and gold
Characteristics of
Money
Money has to be:
• Portable
  easy to carry
• Valuable
  acceptable in exchange for goods and
  services
• Scarce
  be in short supply
• Divisible
  capable of being broken down into small
  denominations
• Durable
  last a long time
Forms of Money
Today


• Notes and coins

• Cheques

• Credit cards

• Debit cards
The Euro

• The official currency of the Eurozone
  (17 of the 27 members of the EU)
• Second most traded currency in the
  world
• Used in:
  – Austria, Belgium, Cyprus, Estonia,
    Finland, France, Germany, Greece,
    Ireland, Italy, Luxembourg, Malta, the
    Netherlands, Portugal, Slovakia,
    Slovenia and Spain
Advantages of the
Euro
• Lower interest rates
• Easy to make price comparisons across
  the Eurozone
• Reduced business costs
  no bank charges on foreign currency
  transactions, exchange rates risks will be
  eliminated
• Increased tourism
  no currency conversion will be required for
  travel within the Eurozone
Saving and Investing

• Saving means not spending
  your money

• Investing means putting your
  money where it will earn interest
Reasons for saving/
investing
• Future purchases

• Unforeseen events

• Children’s education

• Income for the future

• Holidays
Factors to be
considered before
deciding where to invest
•   Safety
•   Interest
•   Liquidity
•   Tax
•   Future benefits
•   Convenience
Where to invest…
An Post         Building Societies




Credit Unions   Banks

				
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