What are the characteristics of a good money?

What are the characteristics of a good money?

The qualities of good money are:

  • General acceptability.
  • Portability.
  • Durability.
  • Divisibility.
  • Homogeneity.
  • Cognizability.
  • Stability.

What business is e-money into?

E-money is a young Nigerian billionaire, known for his extravagant lifestyle. He is the CEO of Five Star Group and Emy Cargo Limited.

Which of the following is an example of electronic money?

It is monetary value that is stored electronically on receipt of funds, and which is used for making payment transactions. E-Money can be held on cards, devices, or on a server. Examples include pre-paid cards, electronic purses, such as M-PESA in Kenya, or web-based services, such as PayPal.

What are the two factors of time value of money?

The exact time value of money is determined by two factors: Opportunity Cost, and Interest Rates.

Which likely to happen when a stored value card is lost?

Uh-oh, the Card’s Gone! But unlike cash, the “funds” on a stored-value card cannot actually be “lost” because they are still at the card-issuing institution in its account. Thus, whether a lost, damaged or stolen card will mean the stored balances are gone for good—like losing a $20 bill—is still unclear.

What are the methods of time value?

3 Techniques for Solving Time-Value Problems in Finance

  • Present value calculations. One common time-value problem deals with expecting a specified sum of money at a point in the future.
  • Future value calculations. Future value calculations work in the opposite manner.
  • Recurring value techniques.

What is the concept of value for money?

Value for money (VFM) is not about achieving the lowest price. It is about achieving the optimum combination of whole life costs and quality. Traditionally VfM was thought of as getting the right quality, in the right quantity, at the right time, from the right supplier at the right price.

What is the purpose of smart card?

With the smart card, users can store personal information like bank records, student identity to access exclusive libraries, company identity cards to gain access through computerized security checkpoints, storing phone contacts as in sim cards and many other huge benefits that guarantee the security of personal data.

Which represents an offline e money?

Online and Offline E-transactions An offline transaction, which uses true digital cash, doesn’t require involving a bank. This type of e-money is stored on a chip, card or other media and can be used by anyone using the same e-money system.

Which transaction Cannot be done by ATM?

“Non-cash withdrawal transactions such as balance enquiry, cheque book request, payment of taxes, and funds transfer, which constitute ‘on-us’ transactions or when a card is used at an ATM of the bank, which has issued the card, shall also not be part of the number of free ATM transactions,” the central bank says.

What is the values of money?

The value of money is determined by the demand for it, just like the value of goods and services. There are three ways to measure the value of the dollar. The first is how much the dollar will buy in foreign currencies. That’s what the exchange rate measures. That is the amount of dollars held by foreign governments.

Who can pass law for e banking?

1. Only such banks which are licensed and supervised in India and have a physical presence in India will be permitted to offer Internet banking products to residents of India.

Is a debit card a store of value?

When we think of money, stored value means anything that isn’t cash, but you can still use to transfer value – checks, debit cards, gift cards, and forms like that. These are used to transport some dollar amount which we can later exchange for goods and services.

How does electronic money transfer work?

An electronic funds transfer moves money from one account to another electronically over a computerized network. EFTs require both the sender and recipient to have bank accounts. The accounts do not have to be at the same financial institution to transfer funds. EFT transactions are also known as electronic banking.

What is discounting time value of money?

Discounting is the process of determining the present value of a payment or a stream of payments that is to be received in the future. Given the time value of money, a dollar is worth more today than it would be worth tomorrow. Discounting is the primary factor used in pricing a stream of tomorrow’s cash flows.

What are the essential of money in your life?

Money is an essential commodity that helps you run your life. Exchanging goods for goods is an older practice and without any money, you cannot buy anything you wish. Money has gained its value because people are trying to save wealth for their future needs.

Why is value for money important?

The time value of money (TVM) is an important concept to investors because a dollar on hand today is worth more than a dollar promised in the future. At the most basic level, the time value of money demonstrates that, all things being equal, it is better to have money now rather than later.

What are the 3 elements of time value of money?

They are:

  • Number of time periods involved (months, years)
  • Annual interest rate (or discount rate, depending on the calculation)
  • Present value (what you currently have in your pocket)
  • Payments (If any exist; if not, payments equal zero.)
  • Future value (The dollar amount you will receive in the future.

What are the types of e-money?

There are two varieties of each type of e-money: online e-money and offline e-money. Online means you need to interact with bank to do a transaction with a third party. Offline means you can do a transaction without having to directly involve a bank.

What is the principle of value for money?

Value for money requires that organisational systems are proportional to the capacity and need to manage results and/or deliver better outcomes and be calibrated to maximise efficiency. An ongoing commitment to business process reforms to eliminate inefficiencies and duplication will help achieve this.

What are the objectives of time value of money?

Time value of money concept is the part of financial education and awareness. Its objective is to teach the value of money which will increasing only due to spending of money. So, do not waste it without reward. Today, your one dollar can work hard in different businesses and it can become 2 dollar in tomorrow.

What is true about electronic money?

Electronic money is currency that is stored in banking computer systems. Electronic money is backed by fiat currency, which distinguishes it from cryptocurrency. Although electronic money is often considered safer and more transparent than physical currency, it is not without its risks.

How does a stored value card work?

A stored value card differs from a bank debit card in that a debit card does not have a specific dollar value pre-loaded. Rather, it is a payment card that deducts money directly from a consumer’s checking account when making a purchase.

What are the applications of time value of money?

In addition, Time Value of Money has applications in many areas of finance including capital Budgeting, bond valuation, and stock valuation. Future Value describes the process of finding what an investment today will grow to in the future. This is called compounding.