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• Debasement in the context of money was frequently practiced by using baser and cheaper metals as substitutes for part of the gold and silver, while retaining the old weight and name
• Another method to achieve the same end as debasement was the reduction of the weight and size of coins, which was equivalent to a partial repudiation of debts and, in some cases, amounted to the levy of a tax upon merchants
• The debasement of coins and the diminution of their weight were not considered criminal acts in the Middle Ages, but rather the exercise of a sovereign right and power
• The voice of the merchant class protested against debasement practices when commerce developed to a point where its importance was understood by kings and princes
• The process of reform in coinage involved the gradual withdrawal of the right of coinage from private persons and the development of strict integrity in coin manufacture by public authorities
• Coinage is now exclusively a government function in major nations, ensuring integrity in the manufacture of coins and perfect confidence in their value
• The manufacture of coins requires honesty and accuracy to ensure that they are accepted at face value by everybody, with absolute confidence in their value represented by the devices placed upon them
• Coins must be accurately labeled packages of convenient size and weight to facilitate rapid and accurate business transactions without the need for weighing or measuring the metals in each exchange
• The universal use of coins is attributed to the necessity of transacting business rapidly and accurately, requiring money metals to be put up in accurately labeled packages of convenient size and weight
• Goldsmithing played a significant role in the development of modern money, with the practice of storing excess gold and silver leading to the issuance of paper receipts that facilitated trade
• The modern banking system evolved from the practices of goldsmiths who loaned out gold they held for customers, issued receipts instead of actual gold, and eventually printed more receipts than the gold they held, leading to the creation of modern money
• Banks, as modern successors to goldsmiths, operate similarly by providing a token or medium of exchange, although money can no longer be redeemed for gold
• Modern money is classified into two types: paper money and metallic money, with metallic money including gold, silver, bronze, and other precious metals that carry values sometimes higher than their face value
• Money can be classified into three kinds: commodity money, credit money, and fiat money, each serving different functions in the economy
• Money can be classified into three kinds: commodity money, credit money, and fiat money
• Commodity money originates from the use of commodities like farm animals, grains, and precious metals like gold for exchanging goods
• Fiat money is issued by authority or government, accepted due to established custom, and reinforced by being "legal tender" for settling debts and payments
• Credit money is in the form of a note promising payment in standard money on demand or at a fixed time
• For money to circulate easily, it should be easily recognizable with visible and distinguishable authentic stamps to prevent forgery
• Money should be durable to withstand exposure to elements like water, humidity, heat, and chemicals during circulation
• Money should be elastic, capable of being increased or decreased based on the economy's needs, like printing more money during high-demand periods
• Money should be convertible, able to be exchanged for other currencies, facilitating international trade
• Money should be divisible into fractions to facilitate flexible exchanges and pricing, benefiting valuation and commercial transactions
• Money should be portable, easy to carry anywhere to ensure convenience and fluidity in trade
• Money should have the necessary attributes of acceptability, durability, divisibility, portability, and convertibility to perform its functions effectively
• Money is a medium of exchange that eliminates challenges in barter transactions, gives consumers liberty to manifest preferences, influences the quality of goods and services produced, and serves as a tool for economic activities
• Money as a means of payment is crucial for settling present and future transactions, whether for business or personal satisfaction
• Money as a store of value allows for present and future transactions, avoiding deterioration of value over time
• The nature of money is better understood through its functions as a medium of exchange and means of payment, rather than its physical form
• The shift to paper money in Europe increased international trade, leading to the creation of the first currency market and currency wars between nations
• The 21st century introduced disruptive forms of currency like mobile payments and virtual currency, with mobile payments being rendered through portable electronic devices for products or services
• The word "credit" is derived from the Latin word creditum, meaning trust
• Credit refers to the ability to acquire goods, services, money, or securities at the present time in return for a promise to pay at a certain future time
• In evaluating the settlement of a credit transaction, the Cs of credit are considered:

  • Capacity: managerial ability of the borrower
  • Capital: resources owned by the borrower
  • Character: personal integrity of the borrower
  • Collateral: security required for the loan
  • Condition: external factors affecting the borrower's ability to pay
  • Currency: stability of the country's currency
• Confidence (The Real Foundation of Credit) refers to the creditor's assessment of debtor's attitudes
• Individual Money Lenders are unlicensed money lenders who make funds available in exchange for interest payments
• Department stores offer credit to consumers for personal and durable goods
• Pawnshops offer secured loans with personal property used as collateral
• Commercial banks accept deposits and finance loans for individuals and businesses
• Republic Act No. 3765, the Truth in Lending Act, requires the disclosure of finance charges in connection with the extension of credit