The Presentation On

monetary system Submitted to:Ms. Fatima Satter

Submitted by:Jasfia Khanam Fama

ID:133200105Section:2

Money is the set of assets in the economy that people regularly used to bye goods and services from other people.

According to the economist definition, money includes only those few types of wealth that are regularly accepted by sellers in exchange for goods and services.

What is money?

Money has three functions in the economy: It is a Medium of Exchange that buyer gives to

seller when they purchase goods or services. It is a Unit of Account ,yardstick people used to

post prices and record debits. Money is a Store of Value, that people can used

to transfer purchasing power from the present to the future.

The Functions of money

KINDS OF MONEYTypes Definition Example

Commodity money when money takes the form of a commodity with intrinsic value, it is called commodity money

Gold coin, cigarettes etc

Fiat money money without intrinsic value is called fiat money

Paper money Taka , Dollar, Euro etc

CENTRAL BANKS TOOLS OF MONETARY CONTROL

Reserve requirements:

The central bank holds

money supply with reserve

requirements, which are

regulations on the minimum

amount of reserve that banks must hold against

deposit. The discount rate: The

interest rate that central

bank changes for the loan.

Open market operation: central

bank conduct open market

operation when it byes government bonds from or sell

government bonds to the

public.

OUTLOOK IN MEASUREMENT MONEY IN BANGLADESH Money supply (M1) also known as narrow

money includes coins and notes & other assets that are easily convertible into cash.

Broad money (M2) known as short term deposit in Banks, Long term deposit , Foreign deposit.

In 2014 M1 is increased to 13,35,151 BDT million.

Average money supply (M1)is 2,47,952.32 BDT million in March 2014.

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