Please enable JavaScript.

Coggle requires JavaScript to display documents.

MONEY, BANKING AND THE FINANCIAL SYSTEM (MONEY (CHARACTERISTICS OF MONEY…

- - - - Money is held as a precaution against some unforeseen events
    - - Money is hold for speculative purposes such as to buy financial assets
    - - Money is used for conducting everyday transactions
- - - - savings and fixed deposits in commercial banks
      - Negotiable instrument deposit (NID)
      - M1
      - Negotiable certificates of deposit (NCD)
      - Bank Negara Malaysia certificates
      - Repurchase agreement (repos)
      - Foreign deposits in commercial banks or Bank Negara Malaysia
  - - - M2
      - Savings and deposits in other financial institutions
      - Net issues of NCD in other financial institions
      - Repurchase agreements in other financial institutions
  - - - Currency/ Fiat money (coins and paper money)
      - Checkable deposits or demand deposits