3. • Money, Credit, and, Banking are
realities that confront modern
man almost every hour of his life.
• Changes in whatever aspect
regarding money, credit, and
banking affect the lives of
people.
CHAPTER
I
4. MONEY IS USED AS A MEANS
OF EXCHANGE, ITS HOLDER
IS SAID TO HAVE THE POWER
TO PURCHASE.
5. MONEY AND INFLATION
Not everybody could be aware that
inflation is a natural occurrence in the
economies of most countries.
MONEY AND BUSINESS CYCLES
Business cycle refers to the inevitable ups
and downs of economic activity, as
measured by periods of economic growth
and contraction.
MONEY AND INTEREST RATES
Fluctuations in interest rates happen partly
because of money
6.
7. MONEY AND INFLATION
Not everybody could be aware that
inflation is a natural occurrence in the
economies of most countries.
MONEY AND BUSINESS CYCLES
Business cycle refers to the inevitable ups
and downs of economic activity, as
measured by periods of economic growth
and contraction.
MONEY AND INTEREST RATES
Fluctuations in interest rates happen partly
because of money
8. • CREDIT HAS BECOME A
GREAT INFLUENCE IN
THE DEVELOPMENT OF
ECONOMIES.
• WHEN PROPERLY USED,
IT CAN HELP NATIONS,
BUSINESSES, AND EVEN
INDIVIDUALS ENGAGE IN
WEALTH-ENHANCING
ACTIVITIES.
9. • Banks constitute a very important
sector of modern economies.
• They serve as intermediaries
between the providers of funds and
those which require them.
• It will be very difficult and
uneconomical for the borrowers and
lenders to relate with one another
without the services provided by
banks.
10. WHAT IS
FINANCE?
• Finance is that subject
area in economics that
encompasses the study of
money, credit, and
banking.
• Finance is that branch of
economics concerned
with resource allocation as
well as resource
management, acquisition,
and investment.
11. • Investments
• Public Finance
• Financial Institutions
and Markets
• Corporate Finance
• Personal Finance
12. MAJOR COMPONENTS OF
FINANCE
Finance may also be classified into
major components, namely:
• Microfinance - that part which deals
with the study of the decision-
making process within the firm.
• Macrofinance - that part which deals
with the environment that affects
corporate financial decisions.