Class Notes
Money & Banking – Finance
Strayer University
Understanding the six elements of finance and their purpose
Money
Currency that is in constant circulation to be used as a medium of exchange, store of value, or
means of payment.
Functions of Money:
Medium of exchange-Currency accepted in exchange for goods and services.
Store of value-Asset, currency, or commodity that maintains its value.
Unit of account-Provides an accurate measure of goods and services sold or exchanged.
Financial Instruments
Also known as security; is a physical or digital monetary contract that can be traded, modified, or
settled between parties.
The importance of financial instruments is to reduce risks and secure future cash. All securities
are tradable assets. When trading securities, it creates an asset for one party and liability for the
other.
Financial Markets
A system that allows individuals to buy/sell securities, bonds, equities, and trade currencies.
Financial markets are essential to our economy. They provide financial assistance for private
companies, the government, and goods and services.
Markets can also influence the costs of buying food and taking out a loan.
Money & Banking – Finance
Strayer University
Understanding the six elements of finance and their purpose
Money
Currency that is in constant circulation to be used as a medium of exchange, store of value, or
means of payment.
Functions of Money:
Medium of exchange-Currency accepted in exchange for goods and services.
Store of value-Asset, currency, or commodity that maintains its value.
Unit of account-Provides an accurate measure of goods and services sold or exchanged.
Financial Instruments
Also known as security; is a physical or digital monetary contract that can be traded, modified, or
settled between parties.
The importance of financial instruments is to reduce risks and secure future cash. All securities
are tradable assets. When trading securities, it creates an asset for one party and liability for the
other.
Financial Markets
A system that allows individuals to buy/sell securities, bonds, equities, and trade currencies.
Financial markets are essential to our economy. They provide financial assistance for private
companies, the government, and goods and services.
Markets can also influence the costs of buying food and taking out a loan.
