Money is anything that serve as a means of payment or method to settling debts.

Fiat money : anything which serve as a means of payment by the government declaration but has no intrinsic value.

It is a legal tender for all debts, public & private.

Creator of wealth : Money make it easier to accumulate wealth.

A store of value : is an item that people can use to transfer purchasing power from the present to the future. For the purpose of savings (as long as we are confident that it will keep/store it present value and therefore retain it purchasing power in the future when we come to use it).

A Unit of account or standard of value : It is the yardstick people use money to compare the values of commodities. Money price make it easier to determine how much product are worth.

Means of deferred payment ; being able to borrow money and pay it back over a relative long period of time.

A medium of exchange; money serve as readily acceptable means of payment for the purchase goods & services. Money is exchange for products. Note ; In a barter economy, goods & services are traded directly for other goods & services. In a barter economy there must be a double coincidence of wants for a trade to take place.

Fiat money : is used as money because of government decree

It does not have intrinsic value (i.e coins, currency, check deposit).

Currency is the paper bill and coins on the hands of the public.

Commodity money : takes the form of a commodity with intrinsic value. (i.e gold & silver)

Demand deposits are balances in bank accounts that the depositors can access on demand by writing a check.

Acceptability : the legal status of money is given as legal tender by government.

Divisibility : be able to divide into smaller units to unable a wide range of transactions e.g RM 1 = 100 cents

Durability : must be able to stand the test of time without disintegrating.

Relative scarcity : An increase in the money supply can lead to a fall in it`s value. People need to be confident that the value of their money will be maintained by for example the government (via controlling the amount of the money circulating in the economy).

Portability : can be carried around easily (in wallet / pocket)

The monetary system consists of the central banks and the banks and other institutions that accept deposits and provide the services that enable people and business to make and received the payments.

A bank is commercial or state institutions that provide financial services, including issuing money in the various form, receiving deposits of money, lending money and processing transactions and the creating of credit.

Savings bank is financial institutions whose primary purpose is accepting savings deposits.

Islamic bank refers to a system of banking or activity that is consistent with Islamic laws and principles and guided by Islamic economics. In particular Islamic law prohibit usury, the collection and payment of interest.

Investment banks : help companies and government and their agencies to raise money by issuing and selling securities. They assist public & private corporations in raising funds in the capital markets as well as in providing strategic advisory service for mergers, acquisitions and other types of financial transactions (i.e Am Bank Investments, CIMB Investments and etc).

Commercial banks : accept deposits from customers and in turn makes loan, even in excess of the deposits: a process known as fractional reserve banking. (i.e Affin Bank, CIMB, Maybank & etc)

Small and Medium scale (SME) bank : specialized bank that promote the business, financing of projects and tell revenue generations scheme to entrepreneurs.

Acts as a banker`s bank, making loan to banks, controlling bank interest rate and as a lender of last resort to the banking sector during times of financial crisis.

Regulates banks to ensure they follow federal laws intended to promote safe and sound banks practices.