Money management

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No one should be without a plan for managing its money. The plan is called budget. It is a way to get what you want most. To make the budget you should prepare a checklist. Your checklist should include your needs, wants and goals. Needs are the things you cannot do without. Wants are the things that you enjoy, but can do without. And goals are something to strive for in the future.
The second step is to estimate your income. Write down all the income you expect to receive in a week.

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Money management                                                                          

No one should be without a plan for managing its money. The plan is called budget. It is a way to get what you want most. To make the budget you should prepare a checklist. Your checklist should include your needs, wants and goals. Needs are the things you cannot do without. Wants are the things that you enjoy, but can do without. And goals are something to strive for in the future. 
The second step is to estimate your income. Write down all the income you expect to receive in a week. 
The third step is to estimate your expenses. For this keep a record of daily expenses. After a while, you will get used to itemizing your expenses. 
And the last step is to setting up your budget. On one side write your estimated income. On the other, list your estimated expenses. If you see that you are going overboard, cut out the things that is least important to you.  
Your budget may include the amount that you are going to save for a major purchase, for a rainy day or for a bank deposit. 
Your income is the standing point for all saving. There are many places to put the money that is saved. The average person should first put his saving where they are safe, have growth potential and are easily converted back to cash.









The economy of Great Britain 
Great Britain is situated on two large islands, the larger of which is Great Britain, the smaller is Ireland. The total area of Great Britain is 240 000 sq. kms, its population is 56 000 000 people.  
In the north-west and west country is washed by the Atlantic ocean and Irish Sea, in the east by the North Sea. 
Great Britain consists of four main parts: England, Scotland, Wales, and Northern Ireland. Administratively GB is divided into 55 counties. The biggest cities of GB are London, Birmingham, Glasgow, Liverpool, Manchester, Edinburgh, and Cardiff. Parliament in GB consists of two Houses – The House of Lords and The House of Commons. There are two main political parties in GB: the Conservative party and the Labor party. 
The UK`s economy is one of the world`s largest. The British economic system exhibits the characteristics of a mixed system combining market-based features with some socialist characteristics. 
The manufacturing and service industries together wits construction, account for about 93 percent of Britain`s GDP, the rest is shared by energy production and agriculture.  
The service industries include business services, trade, travel, tourism, education, public health, administration. 
Overall, the UK`s mixed economy has mostly free market features but retains some socialist characteristics, such as the government owning a stake in some industries. 
Today the policy of the government is aimed at encouraging and expanding the private sector.  
With the exploitation of oil and natural gas from the Continental shelf under the North sea, the country is not only self-sufficient in energy, but even exports some of its oil abroad. 
As Britain has an open economy it is necessary for the country to export more on the international market than to import. 
However, traditionally the country imports more than it exports, which leads to a deficit in the balance of payments. It is usually covered by transactions on the international market, which reflect Britain`s position as a major financial center of the world. 
The transactions connected with the activities of banks, insurance companies, brokers and other financial institutions of the City of London provide world-wide financial services. 
London is home to the London Stock Excharge, founded in 1801 and one currency in the UK, which chose not to adopt the Common European currency, the euro. 
GB is one of the world`s leading industrialized nations. It has achieved this position despite the lack of most raw materials needed for industry. The country also must important about 40% of its food supplies. 
Within the manufacturing sector, the largest industries include machine tools; electric power, automation, and railroad equipment; ships, motor vehicles and parts; aircraft; electronic and communications equipment; metals; chemicals; petroleum; coal; food processing; paper and printing; textiles; and clothing.

















Money and it’s functions

      Money  is a commodity commonly accepted as a medium of economic exchange. Money circulates from person to person and country to country thus facilitating trade and it is the principal measure of wealth. Money has four functions: is to act as a medium of exchange.

      That function is the unit provides the basis for keeping account  and  calculating cost, profit, and loss. The third serve as a standard of deferred payment. Provide a store of wealth.

     Metals, especially gold and silver, have been used for money at least  4000 years. In the late 18th and early 19th centuries, banks began issuing such notes – banknotes. Each banknote was redeemable for gold or silver.

     Monetarism as an economic theory states that inflation is caused by an excessive supply of money. Thus the best way, to manage and control a country’s economic system is to limit the amount of money in circulation. Monetary systems are today very much alike in all the major countries of the world. Monetary systems consist of three levels: the holders of money; commercial banks; central banks.

     Criminals use the financial system to put money which has been obtained illegally into legal businesses and bank accounts so that they can hide it or use it. These activities are commonly referred to as money laundering. In January 1989 the Basle Statement of Principles on Money laddering was circulated to all institutions authorized  under  the Banking Act. The Statement of Principles seeks to deny to those involved in money laundering by the application of the following principles: the first is know your customer; the second is compliance with laws; the last is cooperation with law enforcement agencies.









Kinds  of business organizations

A firm is a business organization. A budget is a plan for spending  money. Economics is the study of how people try to get the most out of limited resources.  Good is something of value that can be seen or felt. Service is something of value that cannot be seen or felt. Natural resources are the things provided by nature that do into the making of goods and services. Human resources are people who produce goods and services.  Capital resources are machines, tools, and building used to produce goods and services. Investment is the purchase of new equipment. Economic system is the method a particular society uses to get the most out of its resources. Capitalism is the America economic system. Free enterprise is the right of an individual. Eminent domain is the right of the government to tame private property for public USE. Profit motive is the effort to make the greatest amount of money. Competition is the effort to outperform other business organizations.

Types of Economic Systems

  Is any one economic system really better than another. You will be in a better position to answer this question later  on.

  In much the same way, a family, village, or nation must produce and consume goods. This is true for all people, no matter what economic system they live under.

  Since all people produce and consume goods, they must decide:

WHAT? HOW? WHO? – questions that must be answered by every economic society.

   There are three ways of answering these questions: Tradition; Command, or Force; and Free Market, or Free Choice.

  A society might say it will hunt for food at a certain time, in a certain place, and in a certain way because it has always done so.

  A command economy will decide what is to be produced. It may order people to take certain jobs.

A free market economy will produce the goods and services that consumers indicate they want.

   No economic system today is all one way or the other.

  In a capitalist economic system, the factories and equipment used to produce goods are owned by private individuals or corporations.

   In a socialist economic system, the means of production such as the factories, are owned by the government, but the finished goods, such as the cars and homes, are owned by individuals.

  In a communist economic systems, the means of production and the finished products are owned by the government.


The economy of the USA

     Most of the goods and services in the United States are produced by private individuals rather than by the government. Americans, however, have long believed in free enterprise. By this they mean the right of anyone to enter into a legal business and conduct it as he sees fit.

Of course, there are some limitations, established by law to prated the public, that prevent businessmen from doing harmful things. The government requires that licenses be held by anyone practicing these professions.

  Under the American economic system, the right to private property is one we all possess. Here again, the right to own property and use it as we see fit has certain limitations. If, for some reason, the government should decide that if needs your property, it does have the right to take it. The right of government to take property that is to be used for a public purpose is called eminent domain.

   At the heart of the American economic system lie the profit motive and competition. The profit motive affected all phases of business activity. The firm will try as best it can to give the public the product it wants. Business also strive to keep their costs low.

  The profit motive has also had the result of making consumers important  people. Because so many different firms are competing for their business, consumers are able to choose from among a variety  of products. Free enterprise private property competition, and profit motive distinguish capitalism from other economic systems. The American economy is predominantly privately owned, competitive, and concerned with making profits.












Types of consumers

   Everyone is a consumer. It does not matter how old a person is. We are consumers from the day we are born until the day we die. It does not matter if the individual is rich or poor male or female, black or white. We are all consumers.

   In some ways, all consumers are alike. We buy and how much we buy depend upon many factors. Of course, the more money we have, the more we can afford to buy.

   Although we are all different individuals and the refore do not spend in exactly the same way, we can see some general patterns of spending if we examine different age groups.


    Much of the spending  for the pro-teen group is done by adults for their children. The spending will be for such things as toys, dolls, candy, and paints.


      Teen-agers, as a group, make up about 25 million consumers. Most of this money is spent for such things as clothing, school supplies, dates, records, and general necessities.

    Living alone means that the major spending will be for rent and food. In addition, clothing, entertainment, vacations, cars, and home furnishings will be important.

   Young  Marrieds

   The major expenses of young couples include furnishing  a new home keeping up this home, and buying  food.

   The Middle-Aged

  When the children go out on their own, the spending pattern changes, however. Middle-aged couples then have more money to spend on personal expenses.


  Medical expenses become increasingly important as one grows older. Clothing styles become less  important.

  Consumer is  important because. Consumer  spending  influence  prices. Consumer  spending  is   important  part of demand. Consumer demand effects  business and employment.














  Advertising is using  mass media to interest  consumers in a product. Advertising is good or bad. Actually, it may be a little to both. You  can list the following advantages and disadvantages  of advertising.


Stimulates  Demand. Demand increases sales, makes possible the mass production of goods, and keeps employment high.

 Gives Information. Consumers  learn about  new products and find out more about products already on market.

Saves Time. Advertising tells what products are around  and  where they are sold.

Stimulates Competition. Manufacturers have to keep on their toes because  consumers know about the different brands and new products.

Lowers Prices and Provides Entertainment


May Mislead the Public. Ads sometimes mislead  the public into thinking they are getting something that is not being offered.

 Often Misuses Language. Some ads are silly or meaningless and violate the rules of good English.

Encourages Impulse Buying and Raises Prices.

May Influence the Mass Media. Big advertisers can control the press, radio, and television by refusing to advertise.




Careers in accounting

   Accounting is the study of how businesses track their income and assets  over time. Accountants engage in a wide variety of activities besides preparing financial statements and recording business transactions including computing costs and efficiency gains from new technologies. There’s a lot to get out of a job in accounting. Perhaps most important: you will learn how business works. Accounting jobs offers stimulating and challenging work that is constantly evolving.

    One major area of accounting is public accounting. Most public accountants  have their own business or work for accounting firms.

  A second major area of accounting is private, or management, accounting. Most management accountants handle the financial records of the firm for which they work and provide company executives with the financial information.

  A third  major area of accounting is government accounting. Government accountants examine the records of government agencies and audit private businesses and persons who have dealings with the government.


International   trade

   Why are we bying goods from fogereign countries at a time when our workers are looking for jobs and our businesses are looking for customers? If we reduced our imports these goods would have to bought from our companies.

  Imports are the goods or services purchased from a foreign country.  Imported services include such things as a trip to Indonesia on a Norwegian freighter, or the travel of American tourists in Mexico.

  Why we continues to trade with foreign countries. There are certain foods we like that can be grown only in foreign countries. All our supplies of these foods must be imported. Other natural products, must also be imported.

   When a countries imports among to more fanits  exports it must also think of the consequences, For this reason governments sometimes take steps to increase their exports and limit their imports. One thing it does is pass laws that limit the quantity of certain kinds of foreign goods that may put a special tax, or tariff, on these imports. This tax, makes imported goods more expensive to buy.

  We have seen that a nation will regulate foreign trade for two economic reasons: to increase exports and reduce imports, and to protect an industry from foreign  competition. Let us now see how this regulation is accomplished.

  A tariff is a tax on imports.

 Quata is a limit on the total value or amount of a product that may be imported.

Foreign currency controls is regulations limiting the amount of foreign moneys that importers may obtain.











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