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Paper money, coins and banks

 The emergence of coins dates back to the seventh century BC, and one of the most important types of monetary assets is the papers issued for expenses, including paper money, all sums paid by simple writings, and traded commodities such as cash, checks and commercial accounts.

Paper money


Barter means direct exchange of a commodity for a commodity without any intermediary entering between them.

We mention among the most important reasons that made the barter system deficient, the increase in the number of goods and individuals in society, specialization and division of labor, and the emergence of surplus production.

As for the disadvantages of bartering, they are summarized in the fact that we find it difficult to find a medium for exchange, and to find a unit of value that corresponds to the desires of dealers and the indivisibility of goods.

Determining the exchange ratio is a very difficult process due to the multiplicity of exchange rates, instability and bargaining power between the mutual parties and the absence of an acceptable measure of the values ​​of goods and services.

The metal that broke the barter by using it as cash (as money) according to Marx is silver.

The principle of barter is based on the bilateral compatibility of dealers according to ability and quality, time and place, and terms of receipt and delivery.

The law of the swap ratio is given by the relationship: p = n (n_1) / 2

_ If the number of commodities available in the market is 100, then the number of exchange ratio will be (4950).

The method of preserving wealth has caveats and disadvantages, among which we mention the most important: The process of storing wealth in the form of commodities and storage expenses requires the possibility of inventory being damaged or corrupted or a lack of quantity, the risk of substitute goods emerging during the storage period or a change in consumer behavior.

As for future payments, it is represented by owning tomorrow through what we own today. The concept of forward payments may evolve in contemporary economies to include the formation of forward prices, future markets, and rational expectations of exchange rates.

Money is defined as: the thing that is accepted in circulation and has general purchasing power, and it is the thing that is used as an intermediary in exchange and that is used as a measure of values, a warehouse for them, and a means of future payments.

Among the most important types of money: commodity, metal, paper, banking, and aid money.

Among the most important commodity money problems are: the high costs of transportation and storage, the inconsistency of commodities used as money, the difficulty of fragmenting some commodity money and the possibility of some of them being damaged or corrupted over time.

Gold and silver have imposed themselves in circulation due to their relative scarcity and high price, their incapability to spoilage, and their exposure to oxidation by contact with air.

And the possibility of preserving them without harming them.

The possibility of subjecting them to fragmentation without losing anything of them or losing anything of its value

Coinage has gone through several stages, including: the stage of parallel rules, the stage of the binary metal of gold and silver, as well as the stage of the only metal of gold. Issued by a bank or issued by the state, and the state also obliges individuals to accept it to pay at the face value associated with the obligatory price that is accepted without being associated with the exchange with the metal.

The Roman bankers were the first to use bank or credit money. Auxiliary money is called support money and it is considered as facilitating and issued by the Ministry of Finance as a monetary authority and its characteristics are that it is metal pieces of various metals such as bronze, nickel and silver, and the money helps in, facilitating small-scale exchanges and also does not have the power to absolve Unlimited, and the creditor can refuse to accept it in settling his debts.

Grisham is the author of the saying bad money (silver) rejects good money (gold).

Written or written money is called deposit money and it is the newest and most important type of money and it forms a very high percentage of the money circulating in advanced industrial countries, and its characteristics are that it consists of the amounts recorded in, demand accounts with banks and it also consists of the amounts recorded in the treasury and mail saving boxes, and from Its most important tools are check, transfer order, and credit card.

There are also characteristics of the check from the legal point of view that it is not considered cash in itself, rather it is merely a tool or means of allowing the transfer of an amount from one account to another account and it does not have unlimited clearance power, and the creditor can reject the check to settle debts and the law does not oblige him to accept the check.

One of the characteristics of the transfer order is an immediate payment order that includes deducting an amount from the drawer's account and registering it for the benefit of the beneficiary, and it forms a simple letter or letter addressed to the depositor's bank.

There are positive characteristics that written or written cash enjoys, the purchasing power and the savings tool, and it provides safety against the risk of loss and theft.

Quasi money means: it is the debts and obligations of private and international financial institutions, time deposits, savings deposits, deposits and shares in savings and loan funds, insurance contracts and treasury bills.

 

 

 

It is not permissible to issue any currency unless it is matched by an equal increase in the following bank’s assets in gold and liabilities in convertible foreign currencies and liabilities in Syrian pounds resulting from the credit operations of all economic sectors and public bonds, and the coverage percentage must be of gold and of convertible foreign currencies that are included in the coverage 40 At least% of the total coverage elements.

There are also functions for money, including a unit of account, a measure of value, an intermediary for exchanges, and a tool for preserving values ​​and saving, and among the mathematical characteristics of money is that it has no value except within national borders and the mathematical unit remains constant over time, and the unit of account in Syria is the Syrian pound, and the purchasing power of the unit is expressed. Cash is the amount of goods and services that can be acquired in a specific time and place, and the role of money in exchange is clear at the level of individual exchanges and partial analysis, and in contemporary economics, money mediation results in the acquisition of money the legal price, so every debt can be repaid with cash and the seller is not forced to re-spend the amount he receives. Immediately, money can cover any other offer in the market for its enjoyment of general purchasing power, and the unit of payment today is represented by written money and banknotes, and payment is intended to be freedom from commitment through a one-sided exchange process, and we define money as an indefinite means of payment and general and immediate payment.

The liquidity of the first degree consists of auxiliary cash and traded securities, demand deposits and the opening of affiliate accounts in some advanced industrial countries, and second-class liquidity consists of frozen and special deposits and near-maturity financial assets such as exchange letters. The recovery of investments, and consequently production and employment, and in the event of a liquidity deficit in relation to demand leads to higher interest rates, which makes loans more expensive and reduces enterprises' dependence on banks and a decline in production and operation. Economist Knapp distinguished the abstract arithmetic unit, the real unit of payment, and the standard unit value

 


banks

 The monetary system means all the money in circulation and the groups of institutions responsible for issuing or creating money and a set of legislations, regulations, laws and procedures that govern the amount of money. Her and a method for deferred present payments.
Among the characteristics or condition of money is the general acceptance of all members of society, that the units of money are homogeneous and identical, the units of money are divisible and divide into small units, that the money is difficult to perish and resists rapid depreciation as a result of circulation and its transfer between the hands of individuals from the hand of the other, and that the money is light in weight, small in size. The monetary and financial system of a country includes commercial banks, business and development banks, specialized financial institutions, the public treasury and the central bank, and among the basic characteristics of the monetary system are the effectiveness in managing the money supply and the flexibility of the monetary system It equals the purchasing power of all categories and types of money in circulation, the stability of the value of the money unit, the convertibility of money into foreign currencies, and the confidence in the unity of money.
There are problems facing agricultural development plans in developing countries, including: the absence and lack of a banking environment, insufficient credit facilities, misuse of the interest rate mechanism, and good money such as gold goes to hoarding, paying external payments, smelting and forming bullion.
And it is also meant the cash in circulation that it is coin and paper money, assistance that is circulated outside the banking system, deposits of settlement of exchanges, payments, the amount of money offered of all kinds of metal and paper, and assistance that takes place outside the banking system.
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