Money and Banking

What is Money?• Anything which is accepted in

exchange for goods & services.

Barter• Exchange of goods and services

for other goods and services.

Eg. Bread for a haircut

Qualities of Money1. A means of exchange – be in

short supply2. A measure of value.3. Non-perishable/durable – last a

long time4. Portable – easy to carry5. Divisible – can be broken into

small parts

Forms of MoneyCurrency/Legal Tender:• Notes and coinsBank current accounts:• Put money into bank account and

make payments by cheque, laser, CT.Plastic money:• Credit cards, charge cards, store

cards, laser and ATM cards.

•

The bank wants to sell you Australian dollars in exchange for euros at a rate of .82.

The bank wants to buy the Australian dollars back at a rate of .85.

You are going from Ireland to Australia. You want to exchange 600euro into Australian dollars.

You are returning home from Australia and want your money changed back to euros. You have 100euro left.

Plastic Money/Cards• Credit cards: Visa, MasterCard• Charge Cards: American Express• Store Cards: Esso, Statoil• Debit (Lazer) Card• Smart Card

• ATM

Credit CardBuy now pay later.Receives a monthly statement.Pay in part or full.Interest charged on balance.

Charge Card

Amount due must be paid as soon as statement is received.

Annual membership fee.

American Express.

Store CardsGiven by department stores and

oil companies.Customers are given a credit limit.Esso/Topaz, Brown Thomas.

ATMAllows customers withdraw

money, pay bills, order cheque books, change pin, receive statements, mobile top up

Access 24 hoursCheaper than paper transactions

why??

Debit/Lazer Card

Used by current account holders to pay for goods and services

Laser card is swiped through terminal at cash desk.

Money is withdrawn from a/c immediately.

Smart CardUsed by bank and

non-bank customers.

Preloads with money

BudgetingCirrus/Link (use

ATM’s abroad)

Irish Financial Agencies

1. Banks 2. Building Societies3. An Post 4. Credit Unions

Irish Financial Agencies1. Banks

• Allied Irish Bank (AIB)• Bank of Ireland (BOI)• Ulster Bank• Permanent TSB • National Irish Bank (NIB)

2. Building Societies

• Some of the building societies which operate in Ireland are:

• Educational Building Society (EBS)

• Irish Nationwide Building Society

3. An Post

• They have branches all over Ireland in the form of post offices

4. Credit Unions

• Owned and run by their members• Over 500 individual credit unions

in Ireland