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 currencyBelgiumGermanyEstoniaIrelandGreeceSpainFranceItalyCyprusLuxembourgMaltaThe NetherlandsAustriaPortugalSloveniaSlovakiaFinlandNon-participantsBulgaria, 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 kroneLatvia - Latvian latsLithuania - Lithuanian litasHungary - Hungarian forintPoland - Polish złotyRomania - Romanian leuSweden - Swedish kronaUnited Kingdom - British pound
8 Other Major currencies Australian dollarCanadian dollarChinese yuanIcelandic krónaIndian rupeeJapanese yenNew Zealand dollarRussian rubleSwiss francTurkish liraUnited States dollar
9 Forms of Money Currency – notes and coins Cheques Debit Cards Credit Cards
24 DIRT DEPOSIT INTEREST RETENTION TAX 20% tax on interest earned Retained by bank and returned to department of finance - governmentSeanCarmelY110% 50050Y210% 55055Y310% 60560.50Y410%66.55Interest200232.55DIRT20%4046.51Interest after DIRT160186.04
28 Money transmission Money Transmission Cost Safety Record Cheque Stamp duty -50c per chequeVery safewrittenBank Draft€2.40 eachWrittenSOFree on some accountsWritten - StatementDDCTWritten – StatementEbankingNo charge for many transactionsSafe – internet risks – PINOnline Statement printable
29 - fixed amount such as a mortgage/loan Standing Order – Use to pay an amount that stays the sameDirect Debit – used to pay a bill that Differs each time such as Electricity or Phone
30 Simple Interest Q3a Simple Interest Y1 €500 x 5% 25 Y2 €500 x 5% Total75
31 Simple Interest Q3b Simple Interest Y1 €1500 x 8% 120 Y2 €1500 x 8% Total600
32 Simple Interest Q3c Simple Interest Y1 €1900 x 9% 171 Y2 €1900 x 9% Total1197
33 Simple Interest Formula P = Principle sumT = Time/no. of yearsr = interest RateP x T x rExample 3a: 500 x 3 x 5% =75
34 4a Compound Annual Rate CAR Compound Annual Rate InterestY1 €500 x 5%25Y2 €525 x 5%26.25Y3 € x 5%27.56Total78.81
35 4b Compound Annual Rate CAR Compound Annual Rate InterestY1 €1,500 x 8%120Y2 € 1620 x 8%129.60Y3 € x 8%139.96Y4 € x 8%151.16Y5 € x 8%163.25Total703.97
36 4c Compound Annual Rate CAR Compound Annual Rate InterestY1 €1,900 x 9%171Y2 € 2071 x 9%186.39Y3 € x 9%203.16Y4 € x 9%221.44Y5 € x 9%241.37Y6 € x 9%263.10Y7 € x 9%286.78Total
42 4 methods a current account holder can make a payment 188.8.131.52.
43 Lodgement Counterfoil What bank teller does:Significance for current account holder:
44 TermsExplanations1. Endorsed Cheque(a) A cheque which the drawer informs the bank not to honour2. Stopped cheque(b) A cheque with two parallel lines on the front3. Open Cheque(c) A cheque signed on the back by the payee4. Blank Cheque(d) A cheque which is not crossed(e) A cheque with some of the details missing1234