ECOLE NATIONALE SUPERIEURE REPUBLIQUE DE COTE D’IVOIRE

DE STATISTIQUE ET D’ECONOMIE Union-Discipline-Travail

APPLIQUEE

ENGLISH PRESENTATION

THEMA : MONEY

Presented by:

ASSIMANY Kermah Moïse Supervised by :

BURDJIE Edmond Cyrille Mr GOH

EPOH Nzeumon Duvalier

TCHATCHOU Nana Jordan

ACADEMIC YEAR : 2021-2022

 SUMMARY
I. INTODUCTION

II. THE DIFFERENT TYPES OF MONEY

III. FUNCTION OF THE MONEY

IV. ADVANTAGES AND DISADVANTAGES OF MONEY

V. CONCLUSION
I. INTODUCTION

The origin of the term "money" comes from the name of the Roman goddess Juno
Moneta, because it was in the outbuildings of her temple that the Romans set up a
workshop to mint the Empire's coins. Money is essentially defined as an exchange good
and therefore has no use value, like a consumer good. It makes it possible for transactions
to take place within a community of payment, which is historically identified with the
nation state. Money therefore represents an intermediary for market exchanges.
II. THE DIFFERENT TYPES OF MONEY

The first instruments used as money were goods that had both a use
value based on their intrinsic characteristics, i.e. the utility they provided
to their holder, and an exchange value. Some ancient peoples expressed
the value of goods intended for exchange in terms of livestock. The
origin of this accounting practice has survived in our vocabulary in the
form of the adjective 'pecuniary', which comes from the Latin pecus,
meaning 'herd'. In other countries, shells, tea, pearls or dried cod were
used, as in
Newfoundland. The disadvantage of this commodity money was that the instruments of
exchange were not homogeneous: the beads used as money could be larger or smaller, or of better or
worse quality.

1. Barter

Exchange of goods for other goods.

Disadvantages:

- Finding an exchange partner

- The divisibility of goods - The cost of storage.

- the coincidence of needs

Bartering limits trade

Money is an intermediate good accepted by all, which is easily stored and which
facilitates trade and economic growth.

1. Commodity money

It represents livestock, shells, spices, fabrics... which were means of exchange that
had to be durable to be stored, divisible and sufficiently rare for individuals to want
to hold them. Historically, the first currencies were made up of high-value goods
(e.g.
livestock, cereals, salt bars, etc.)
 2. Metallic money

Money made of metals has several characteristics that have ensured its supremacy.
The inalterability of metal, whatever its nature, is a guarantee of durability; money
can then fully fulfil its function as a store of value. Its divisibility into ingots, and
later into coins, makes it possible to express different values; any commodity, even
of very modest value, can thus be priced. Money in the form of metal specie is
easy to transport and has become a valuable instrument of exchange between
people.

Metallic coins were first made of pieces of metal in a raw state, notably bronze:
this was the most archaic stage, that of weighed money. Then came minted money,
i.e. money guaranteed by a political or religious authority that assigned it a fixed
value. Nowadays, metallic money is represented by divisional money, which is
used to make up the difference in daily transactions.

3. Fiduciary money

Fiduciary money (from the Latin fides, "trust") is money made up of banknotes,
which were originally convertible into metallic gold or silver money. The creation
of the banknote dates back to the 17TH CENTURY. Fiduciary money is any money
whose liberating power is determined not by the intrinsic value of the monetary
sign (such as a certain weight of gold), but by the confidence of citizens in the
issuing authority, usually the political authority.

4. Scriptural money

Scriptural money (from the Latin scribere, "to write") is a bank money based on
writing. It corresponds to bank assets (sight deposits) held by economic agents in
the various credit institutions (banks, post office banks, savings banks). These
assets are entered in the credits of bank accounts.

5. Electronic money

It is defined as any monetary value representing a claim stored on an electronic

medium (e.g. Monéo). The loss of the card leads to the loss of purchasing power.
 There are two types of electronic currencies:

- The electronic purse with a chip card allowing the payment of small sums not
covered by bank cards

- The virtual wallet used as a medium for monetary signs or a computer hard disk

III. FUNCTION OF THE MONEY

For the Greek philosopher Aristotle (384-322 BC), money has three functions in
an economic system: to be an intermediary in exchange, to be an instrument for
measuring value and to be an instrument for storing value.

1. Money as an intermediary in exchanges

Money replaces barter as societies develop materially. That is, the direct exchange
of goods for each other is replaced by a process in which goods are exchanged for
money, which, in turn, allows the purchase of other goods.

For example, a craftsman sells the fruit of his labour in exchange for a certain
amount of money, which he can use to buy the goods he does not produce and
which he lacks. It is from the moment a society modernises and evolves towards a
greater division of labour that money tends to replace the barter system.

2. Money as a measure of value

Money makes it possible to compare the value of goods and services of a

heterogeneous nature. It thus contributes to the emergence of a system of prices
that allows economic calculation by informing the various agents in their
individual or collective strategies. A consumer will determine the level of his
expenditure according to his purchasing power. An entrepreneur will recruit new
employees, or purchase new capital goods, according to his financial results and
sales forecasts. A budget minister will determine the level of public spending on
the basis of expected tax revenues. Without money, economic calculation is
 impossible. In this respect, money is one of the factors of economic growth and
development.

3. Money as a reserve of value

An economic agent holding a certain amount of money may not spend it on

immediate consumption, but keep it for future consumption or to meet an
unexpected expense. Unlike real goods, which deteriorate, money is resistant to
time. However, this saving operation is based on the permanence of the value of
money. In order to play this role as a reserve of value, money must retain its
purchasing power in relation to the real economy (production of goods and
services). The value of money must therefore remain stable and not undergo
inflationary depreciation. This last function also contributes to economic growth
and development insofar as savings, which are essential for financing investment,
renew the conditions for production and therefore for future consumption.

IV. ADVANTAGES AND DISADVANTAGES OF MONEY

1. Advantages of the currency

- Sign of power
When you have money, you have an advantage over those around you. This can
be in your professional life as well as in your personal life, and even at the bank.
Money means power and independence.
- A good standard of living
It allows for a certain stability and a good standard of living. In the consumer
society we live in, money is a must-have for survival. When you have money, you
can afford anything. This ranges from unnecessary expenses to all kinds of
investments. Not to mention the fact that you are ensuring a better future for your
children.
- Sign of freedom
Money also means freedom. It is the first step towards a successful adult life. For
young people, it usually means getting their first flat or their first car. But beware,
 it also brings with it some responsibilities, especially in terms of managing
expenses.
- Money is a good servant and an excellent master

It pushes you to give your best and helps you to live well at the same time. You
win on both counts.

2. Disadvantage of currency

- Money causes insecurity

When you have money, a lot of it or not, you can still be a victim of violence,
burglary, racketing and many others. The level of insecurity in the world at
the moment is due to money.
- Worry and money are inseparable
Carrying a certain amount of money with you does not allow for a peaceful
life.
One is always worried about one's physical or material security.

- Causes social imbalance

Nowadays, there is no more equality of opportunity. Those who have money

are always one step ahead of their peers. This social imbalance does not
benefit everyone.

- An increasingly materialistic society

Money can quickly become a focus. We no longer earn money to live, we live
to get money. In a society that is becoming more and more materialistic,
mutual aid and sociability have been forgotten.

- Money leads to a feeling of superiority

When you have money, you are often tempted to feel superior to others. This
not only divides members of the same community, but can also be a source of
tension.

- An increase in corruption
 Of course, money causes corruption. It is an inseparable part of the system of
capitalism in which we live.

V. CONCLUSION
Money is an instrument of exchange which is very essential in economic life. It
was born to solve the problem of bartering that the exchange systems encountered,
it is accepted by all thanks to its liberating power. It can be used as an instrument
of economic policy by a country.