the money
Money is defined as coins and notes that carry a value, and are tradable between people. They are an acceptable means of financial expenditures; Therefore, it is considered the main unit of purchasing power, and it is also defined as an exchangeable financial intermediary, and it helps to obtain assets and personal properties that constitute wealth for people, or part of their private property, and money is the material that is used to apply trading; Whether it is paper money, coins, or any securities of legal value, and it is possible to deal with them in sales, purchases, and savings, such as: financial deposits in bank accounts.
Moneymaking
In the past, people relied on many means, including barter; To conduct their financial transactions, but this method later showed many troubles; Because of the effort and time spent, and the unequal values of the materials that are exchanged with each other; Especially among merchants who were refusing to exchange large-sized things for small things, or replace low-value things with the same high-value, such as: bartering bananas for meat, and hence the need for the manufacture of money, of both types: paper and metal.
Place of manufacture of paper money
Paper money is money that is made of special paper, and these money are printed in the government presses of countries. The paper money industry depends on the use of a mixture of linen and cotton, and this mixture is the paper for money; This industry begins with cotton, which is cooked in a huge pot for about two hours, after which it is cleaned of any impurities that remained attached to its components; by washing it with water; to be ready to knead in a group of mixtures; Until it becomes a unique paper, usable in paper money.
After completing the previous steps, security threads, symbols, and signs that distinguish them from ordinary papers and provide them with protection against forgery are added, then the banknotes are completely dried by using special ovens, after which the banknote printing machines begin their work; To make sure of the size of the cash note required, and its readiness for use, until it is finally printed; To become tradable in many diversified financial transactions.
The location of the coin industry
Metal money is money that is made of metal; That is why it was called by this name, and this money is made in the places where coins are minted in government agencies; Where those responsible for money in governments choose the inscriptions and shapes of the coins before they are minted, and the artist responsible for making coins usually uses models made of clay; to draw their own inscriptions and pictures; but uses a plastic mold to support the clay; Because it is soft at first before it dries out, which prevents it from maintaining the proper drawing of the coin.
The metal-turning machine called the lathe is used to design a miniature model of the coin, after completing the model for the coin, and steel is used in it; As a means of supporting the design of the basic mold, where it is exposed to heat; until it acquires sufficient and appropriate rigidity to produce a copy of the template, then a set of formation templates are used with it, and then pictures, inscriptions, and words are printed, so that the currency becomes ready to apply the final stages of its work, before sending it to the Central Bank; to distribute it to commercial banks.
money history
The history of money is one of the most important events that affected human economic life; It contributed to recording the global economic development; especially after the use of the barter system, which was gradually dispensed with; Because of the geographical spread dependent on the transport of goods between countries and distant regions; With the aim of exchanging them, which led to the impossibility of being able to barter between traders from different countries, and this prompted traders to research and think in a new way; To promote trade between regions and countries.
After thinking about the possible ways to enhance economic trade exchange, the idea of using silver and gold emerged as two means of minting coins, which have become one of the most important tools of commercial exchange, and part of economic relations between societies and countries since antiquity, but because of the size of the coins, and the difficulty of transporting them from one place. to another, especially when large sums were paid, a new method of less weight and greater value was sought that would achieve the desired benefit from trade; Therefore, paper money was invented, and it became acceptable for legal circulation and use, just like coins.
Bankers noticed the spread of paper money in a way that affected the coins stored in bank vaults, so the supervisors of these banks decided to issue paper currencies; To maintain profits, and to protect the banking business from being affected by paper money, with the obligation to replace coins, and use paper money if the holder of this money requests it, and this led to giving the necessary legal considerations for paper currencies.
With the economic progress, the issuance of money has become dependent on two means: government banks, which are given the authority to issue money, and are known as central banks. local, or international; This is in economic transactions between countries, and these two means provided the ability to deposit and save public and private funds with individuals and companies; with the aim of investing them, or using them as financial reserves in case they are needed; The development of money promoted commercial exchange more efficiently and effectively. It is characterized by speed, and the ability to achieve financial transactions in correct ways, with a high degree of security, which maintains the secrecy of financial movements.
properties of money
Money is characterized by a number of characteristics, the most important of which are:
It is a kind of global resource, usable in economic exchange: local and international.
It is the means that expresses the prices and values of measurable things.
It helps people to get the things they want, such as: food, clothes, goods, and others.
Money is one of the main economic means, which provides appropriate support in many areas of the economy, such as: purchasing power.
Prepare a list of revenues
The income statement is defined as the list that shows the percentage of profits or losses in the company during a certain period of time. The money that is paid is called (expenses).
Prepare a list of retained earnings
Retained profits are defined as the profits retained by the company for the purpose of growth and development, and are completely different from the profits that are not retained. The net profit or loss must be calculated before preparing this list, and after indicating the amount of profit or loss from the income statement, this list is prepared to clarify the value of undistributed (retained) profits, i.e. to identify the amount of money that will be paid to investors in their stock dividends.
Costing
The costing sheet is important when starting a business, with the aim of determining the amount of money that the project needs to start, it also helps to find an appropriate amount of funding, and determines the amount of money that the project needs to invest from other sources, so it is preferable to prepare special costs before starting the project to obtain Get a more realistic idea of the money needed.
Budget preparation
The budget list identifies all the financial assets and liabilities of the business, and helps to find the net assets of the project, that is, it gives an overview of the nature of the business activity during a certain date, and specifies the current assets, i.e. the money needed to finance daily operations, and how quickly a person can pay his current debts, That is why the budget is an important indicator to get an idea of the progress of work.
Prepare a cash flow statement
The cash flow list is one of the most important lists in money management, because it keeps track of all the money flowing in and out of the facility, reveals payment cycles or seasonal trends that the facility needs to cover payments, and helps with future planning.