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Unit 4 Money and the Financial Institution, Link Title - Coggle Diagram
Unit 4
Money and the Financial Institution
Functions of Money
Unit Account
Store of Wealth
Medium of Exchange
Standard of Deferred Payment
Features of Money
Portable
Divisible
Durable
Scarce in supply
Narrow and Broad
definitions of money
Narrow money (M0, M1)
Broad money (M2, M3, ..)
Type of Financial Institutions
Central bank
Banks
Commercial Banks, Islamic Banks
Commercial banks
-Take deposits from savers
-Loan to investors
-Participate in payment system
-Create credit
-Foreign exchange transactions
Non Banks
EPF, PNB
Bank Negara Malaysia (BNM)
To ensure the prudent of monetary policy
To issue currency & keep reserves safeguarding the value of the currency
To act as a banker & financial adviser to the government
To ensure financial system stability
Link Title