All banking is: Increasing of the balance sheet
Todays banking is all about Risk Management
Pirces are determined by Supply and Demand.
That includes the price of credit… ie the interest rate
The Interest Rate is the Price of Credit (not Money)
Money vs Currency
Money is an intangible asset, which means it cannot be touched, it cannot be smelled; however it can be seen in terms of numbers. Money does have a few properties such as it must be a medium of exchange; a unit of account; a store of value; and, occasionally in the past, a standard of deferred payment. Currency is a tangible concept that is based on the intangible money. Currency is the promissory note or coin that is presented in form of money. Currency is what brings money to life.
Seigniorage : the difference between the value of money and the cost to produce and distribute it.
Types of Money:
– Paper Money
– Bank Money
– Digital Money
– Programmable Money / democratize money.
Money = Currency + Store of value
Function of Currency:
– Medium of exchange
– Measure of value
Characteristics of Currency:
– Limited Availability
Difference between Currency vs money
Banking Explained – Money and Credit
What gives a dollar bill its value? – Doug Levinson
AML: Anti Money Laundering
KYC: Know Your Customers
CDD: Customer Due Diligence
CIP: Customer Identification Program
Anti-Money-Laundering, Counterterrorism Financing and Financial Crime
Money and Banking: Lecture 1 – Money and the Economy
The Future of Money: Banking on Fintech