Professional Documents
Culture Documents
Money can be best describe as anything widely accepted as payment for goods and
services. In economics aspect, money is a means of payment, a store of value and a unit of account.
(http://www.schoolmattazz.com/2016/10/money-definition-characteristics/ )
I. Transportability
money must be easily moved from one location to another when such movement is needed
to complete exchanges. In other words, it means easy to carry everywhere. This is because
use.
II. Durability
Next characteristics is durability which means that an item remains the same shape,
form and substance over period of time. The durability also means that money must not
easily decompose, deteriorate and change form. This include social and institutional
durability. In addition, the durability is crucial for money to perform some related functions
of store of value and medium of exchange. People are willing to accept an item in payment
for a good because they are assured that it can be traded again for some other good. Thus,
basically an item represent a medium of exchange because it stores value. This transaction
requires durability.
III. Divisibility
Then, it must can be broken down into smaller denominations which is divisibility.
It means money can be divided into small increments that used in exchange for goods and
services of varying values. In order to make people easy to purchase an item or services
with different range of value, money must be divisible. The smaller the divisions, the better
it is. (https://www.tutor2u.net/economics/reference/characteristics-and-functions-of-
money )
The structure of Central Bank Negara Malaysia
Bank Negara Malaysia (BNM) of Malaya Ordinance 1959 (CBO) which established the
BNM was enforced on January 26, 1959. This Central Bank of Malaysia is a statutory body. The
establishment of BNM in 1959 can be fundamentally attributed to the recognition then for the need
for deliberate management of the money and credit situation in the country.
The organization structure of Bank Negara Malaysia is by the Chief Executive Officer
which is the Governor. Next, the Governor is helped and assisted by two Deputy Governors and
eight Assistant Governors. For instance, since May 2000, Bank Negara Malaysia is led by Tan Sri
Dr. Zeti Akhtar Aziz and her group, who together provide a clear strategic blueprint for the long
term development of the bank. Now, Bank Negara Malaysia is managed by Governor named
Muhammad bin Ibrahim. Then, there are 36 departments or units in the bank and most of them are
organized into eight divisions, where each Assistant Governor including a General Manager, being
(http://www.bnm.gov.my/index.php?ch=en_about&pg=en_thebank&ac=50&lang=en )
Conclusion
As the conclusion, The Central Bank of Malaysia which is the one and only Bank Negara
Malaysia (BNM) is very crucial for a country especially in the development aspect. This is because
the ultimate function of BNM is to promote monetary and financial stability as it aimed of
Moreover, it has a monetary policy viewpoint which is to maintain the price stability while keep
supporting the economy growth. In addition, BNM also responsible for financial system stability
and oversees the nations payment system infrastructure which emphasize on the efficiency and
security of the financial systems. The Bank Negara Malaysia is managed by a team that lead by
In the economist aspect, money defined as something that serves as a medium of exchange,
a unit of accounting and a store of value. During the past, money not really important as they used
system barter in order to obtain any goods. But, this sytem has many negative side as it is
complicated to measure goods to be exchange with something else because it has no specific value
for each goods. Therefore, the barter system is no longer used in this era. This is influenced by the
existing of money. Thus, it has many characteristics in order to make it considered as money. For