BANK & FINANCIAL INSTITUTION

Bank and Financial Institution

PAPER ASSIGNMENT

Irvan Yoga Pardistya, SE., MM., Ak. 

 AHNAF TAQIY ROBBANI 

1610631030015

ACCOUNTING PROGRAM

FACULTY OF ECONOMIC AND BUSINESS

UNIVERSITY OF SINGAPERBANGSA KARAWANG

2017

PREFACE 

      Thank you almighty God, who has given His bless to the writer for finishing this Bank and Financial Institution assignment. Thank you for Mr. Irvan Yoga Pardistya, SE., MM., Ak who given the writer the lesson of  Bank & Financial Institution. Thank you for my parents who given the writer strong support. 

          Hopefully we as a student in “State Singaperbangsa Karawang University” can work more professional by using English as the second language whatever we done. Thank you.

MONEY

According to Walker :

a.) Money is all that can be used as money, that money does have many functions, but its main function is as a medium of exchange.

b.) Defining money by saying "money is what money does," meaning that money is all that can be done by money, in other words, money is money because of its function as money and not because of other functions.

According to the Encyclopedia Indonesia :

Money is everything it can be used and also generally acceptable as a means of exchange or as a standard tool in measuring a value, such as, the standard measure of money, the insurer guarantees the debt as well as a measure of purchasing power standards.

According KBBI :

Defining money is the standard measuring tool changers or niali "unity within" legitimate issued by the government of a country in the form of paper, gold, silver or other metal molded shape and specific images.

The types of money :
A. Various type of manufacture Money Based Materials :

1) Coin
Coins are money in the form of coins and usually made of metal bronze, silver, and gold. Examples of coins that exist in Indonesia, namely Rp50.00 Rp100.00 Rp200,00 Rp500.00 and 1,000.00.

2) Paper money
Paper money is money that is mainly made from paper or other material that has a high quality that is waterproof, not easily torn or faded. Banknotes in Indonesia, namely 1,000.00 Rp5.000,00 Rp10,000.00, Rp20.000,00, Rp50,000.00 and 100,000.00.


B. Various type Based Money value :

1) Money is worth the full (full bodied money)
Value for money is said to be full of money if the value stated on top of money equal to the value of the materials used in making money.


In other words, the nominal value is equal to the intrinsic value contained in the money. If the money was made of gold, then the value of the money equal to the value of gold it contains.

2) Money sign (token money)
Value for money is said earnest money if the value is above money higher than the value of the materials used to make money.


In other words, the nominal value is greater than the intrinsic value of money. For example, to make money the central bank issued 1,000.00 Rp750,00 costs.


C. Various type Based Money Issuing Institutions :

1) Money outside banks
Currency is the money issued by the central bank in the form of coins or paper money which serves as legal tender, and must be used by people in buying or selling daily.

2) Money demand deposits
Demand deposits is money owned by the community in the form of deposits (deposits) that can be withdrawn at any time as needed.


This money is only available in certain circles, so that people have the right to refuse if he does not want the goods or services that it provides are paid with this money.


D. Various type Money By Region :
1) Local Currency
Local currency is the currency that applies in a particular country. Examples rupiah in Indonesia, in the Japanese yen, the ringgit in Malaysia, and more.

2) Money regional
Regional money is money that apply in a specific area wider than the local currency. For example in the area of Continental Europe applies the single European currency is the euro.

3) Money International
International money is money that applies across countries. For example the US dollar became the standard for international payments.


STOCK

is bookkeeping or unit of value in a variety of financial instruments which have a reference to part ownership of the company. Issuing stock, enables companies that need funds in the long term for the benefit of 'sell' in the business - shares (equity securities) - in exchange for cash. This is the primary method for raising capital in addition to improving the bond business.

BOND

is a term used in the financial world which is a statement of the issuer's debt to the bondholders and a promise to repay the capital as well as interest coupons later on the due date of payment.

Differences Between Stocks and Bonds :

1.) Income shareholders referred to as dividend income frekuen where he received an unspecified while the owners of the bonds, the income received is already mentioned in bonds with an interest rate that has been adjusted for a certain period of time.

2.) Investment returns earned by shareholders rely on the company's profits so it can not be determined regularly. Even in some of Understanding and Difference Stocks and Bonds case if companies lose money then you as a shareholder also feel the impact. While bondholders profits can be ascertained because the facts did not have a relationship with the company.

3.) The price of the stock investment could not be ascertained and quite difficult to predict. Sometimes stock prices can go up, but not infrequently also down, depending on the company's development. Meanwhile, bond prices generally stable and insensitive to interest rates and inflation rates.

4.) Forms of ownership in the shares are shareholders of a proprietary interest in a particular company, while the forms of ownership in bonds only form of acknowledgment of debt. Thus, the shareholder as the company owner or have rights in a company, while bond holders are not the owners of companies, but the company only owes.

5.) Time stock investment are indefinite period while the bonds already have a set time period.

Type of Stock :

A. Shares of Aspect Ability Bill or Rights Claim :

1.) Ordinary Shares (Common Stocks)

Stocks of this type has characteristics that can make a claim of ownership on all the income and assets owned by the company. However, the owners or shareholders of this type only have limited liability. The advantage is that if there is a risk the worst example of bankrupt companies, the maximum loss incurred by the shareholders amounted to invest in the stock.

2.) Preferred Stock (Preferred Stocks)

These types of stocks are designed as a combination of bonds and common stock. Some investors like stocks that can generate fixed income (such as interest on bonds). In general, preferred stock characteristics similar to ordinary shares that could represent equity ownership and issued without expiration date written on the sheet stock, and pay dividends. These shareholders can also make a claim on earnings and assets previously, the dividend remain for the duration of the shares, and has the right to redeem and interchangeable (convertible) with ordinary shares. This makes these stocks are similar to bonds, and many investors.

B. Stock of Aspect How to transition :

1.) Stocks Up Performance (Bearer Stocks)

Physically, the stock is not written by their owners. It is intended that easily transferable from one investor to the other investors. Many investors who own shares with the aim of it is for sale. Investors need not worry because legally, who's holding the shares, then he recognized as the owner and has the right to be present at the General Meeting of Shareholders (AGM).

2.) Stocks on Behalf (Registered Stocks)
The opposite of bearer shares, the shares on behalf of its shareholders clearly written his name in the paper stock and a transfer means also must go through certain procedures.

C. Type Stocks of aspect Trade Performance :

1.) Blue Chip Stocks

These types of stocks hunted many investors because it comes from a company that has a high reputation, as leaders in the industry, and have a stable income and consistent in paying dividends.

2.) Income Stocks

Types of stocks also has advantages in terms of the ability to pay a higher dividend than the average dividend paid in the previous year. The ability to create higher incomes and regularly distribute a cash dividend tersediri be an attraction for investors.

3.) Growth Stocks

(Well-Known)

Similar to the blue chips, shares of this type have high earnings growth, as officials in similar industries and is known as a company that has a high reputation.

(Lesser-Known)

Although not as leaders in the industry, but this type of stock is still characterized by growth stock. Usually the shares of the company's regions and less popular among issuers.

4.) Speculative Stocks

Investors with a high risk profile risk, can try these types of stocks. This Stocks has the potential to yield high returns in the future, but can not consistently earn income from year to year.

5.) Counter Cyclical Stocks

These types of stocks the most stable current volatile economic conditions because it is not affected by macro economic conditions and general business conditions. The illustrations in the event of economic recession, stock prices have remained high, in which the issuer is able to provide high dividend. This could occur as a result of the ability of issuers to obtain a high income during recessions.

Recent Stocks kind in Indonesia Stock Exchange :
Indonesia Stock Exchange (BEI), as a transaction of sale and purchase and registration of shares currently have a kind of new shares to be traded are ETFs (Exchange Trade Fund) which is a combination of mutual funds open to stock and purchases in the stock as well as shares in the capital market is not in manager investments (MI). For investors who are accustomed to playing at the stock exchange, one-stop service system in ETF transactions certainly very easy.

ETF divided by 2, the ETF index and Close and ETFs. On the index ETF, investors can allocate their funds in a set portfolio of securities contained in a particular index in the same proportion. While on Close and ETFs, Stocks of this type traded on stock exchanges in the form of a closed investment and actively managed.

Types of Bonds :

1. Type of bonds by the issuer :

a.) Corporate Bond, bonds issued by certain companies, these companies can form private corporations or companies (SOEs).

b.) government bond, bonds issued by the central government.

c.) Municipal Bond, bonds issued by local governments that will be used to finance public projects.

2. Types of bonds by the guarantee :

a.) Secured Bond, bonds are secured by using certain wealth owned by the issuer, or can be secured through the use of a third party. These bonds are divided into three guaranteed bonds (bonds guaranteed by a third party), mortgage bonds (bonds that are secured by mortgages or fixed assets), and collateral trust bonds (bonds that are secured by using the securities owned by the issuer).

b.) Unsecured Bond, bonds are not secured by using certain wealth which is owned by the publisher.

3. Type Bond redemption rights :

a.) Convertible Bond, bonds that can be exchanged for shares of the company issuer. This means that bond holders have rights if any time to redeem a bond to a stock company.

b.) Exchangeable Bond, bonds that entitle bondholders to exchange shares of the company into a number of shares of affiliated companies belonging to the issuer.

c.) Callable Bond, bond entitles the issuer to buy back the bonds at a specified price over the life of the bonds.

d.) Putable Bond, bond entitles the investor that requires the issuer to buy back the bonds at a specified price over the life of the bonds.

BIBLIOGRAPHY

Manan, Bagir, 2000, Kedudukan Bank Indonesia Sebagai Bank Sentral, Monograph.

Bank Indonesia, 2011, Agar Bank Sehat, Uang Nasabah Selamat, ekonomi Kuat, Newsletter Gerai Info Edisi XIX, Jakarta.

http://uangindonesia.com/tentang-uang-pengertian-sejarah-fungsi-syarat-jenis-dan-teorinya/