Presentation Transcript

1. Banking

2. Forms of Money

3. Money Barter Coin Notes
4. A gold reserve is the gold held by a central bank or nation intended as a store of value and as a guarantee to redeem promises to pay depositors, note holders (e.g., paper money), or trading peers, or to secure a currency.
5. The physical appearance of euro banknotes is identical throughout the euro area. However, while all euro coins have a common “European" side, they also have a ‘national’ side. The common side has the same design in all the euro-area member states. The Irish national side depicts the harp. All euro coins are legal tender throughout the eurozone, irrespective of which national side the coins have. 
6. 17 Member States of the European Union use the euro as their currency Belgium Germany Estonia Ireland Greece Spain France Italy Cyprus Luxembourg Malta The Netherlands Austria Portugal Slovenia Slovakia Finland Non-participants Bulgaria, Czech Republic, Denmark, Latvia, Lithuania, Hungary, Poland, Romania, Sweden and the United Kingdom are EU Member States but do not currently use the single European currency.
7. Not in Euro Bulgaria - Bulgarian lev Czech Republic - Czech koruna Denmark - Danish krone Latvia - Latvian lats Lithuania - Lithuanian litas Hungary - Hungarian forint Poland - Polish złoty Romania - Romanian leu Sweden - Swedish krona United Kingdom - British pound
8. Other Major currencies Australian dollar Canadian dollar Chinese yuan Icelandic króna Indian rupee Japanese yen New Zealand dollar Russian ruble Swiss franc Turkish lira United States dollar
9. Forms of Money Currency – notes and coins Cheques Debit Cards Credit Cards
10. Debit Cards Laser/Switch Money in the account
11. Credit Card Visa Borrowing money
12. Charge Card America express Diners Club Type of Credit card where balance must be cleared on receipt of statement
13. Store Credit Card Arnotts Clearys Debenhams Store credit card – like a credit card but can only use it in that store

14. Financial Agencies

15. Banks Allied Irish Bank - AIB Bank of Ireland Ulster bank Permanent TSB – Trustee Saving Bank ACC – Agricultural Credit Company
16. Building Society EBS – education building society
17. Credit union Co – op owned and run by members
18. An Post Savings Investments AIB banking

19. Services

20. Bank Services Cheques – with current account Bank Draft Standing Order – SO Direct Debit – DD Credit Transfer – CT Paypath – CT for paying wages Cards – credit cards, laser cards, ATM cards, Smart cards Night Safes ATM – automated teller machine Ebanking - Online banking
21. Savings Savings earn interest Interest subject to DIRT – deposit interest retention tax Some An Post schemes not subject to DIRT
22. Interest on Savings Simple Interest Compound Annual Rate (CAR) Interest
23. DIRT DEPOSIT INTEREST RETENTION TAX 20% tax on interest earned Retained by bank and returned to department of finance - government
24. Foreign Exchange Foreign cash Cross Border Draft Travellers cheques Laser card Credit Card
25. Euro to Foreign Currency Multiply by the sell Rate Foreign Currency to Euro Divide by the buy Rate
26. AIB ACC DIRT DD SO CT CAR EBS
27. Money transmission
28. Simple Interest Q3a
29. Simple Interest Q3b
30. Simple Interest Q3c
31. Simple Interest Formula P = Principle sum T = Time/no. of years r = interest Rate P x T x r Example 3a: 500 x 3 x 5% =75
32. 4a Compound Annual Rate CAR
33. 4b Compound Annual Rate CAR
34. 4c Compound Annual Rate CAR
35. CAR formula P = Principle r = interest rate T = time P (1+ r)T
36. 5a & b DIRT
37. 5c, d, e, f DIRT
38. John Paid a Cheque (Bank of Ireland )to Olive. Drawer: Drawee: Payee:
39. Endorsed cheque: Dishonoured cheque:
40. 4 methods a current account holder can make a payment 1. 2. 3. 4.
41. Lodgement Counterfoil What bank teller does: Significance for current account holder: