LSC:S2 Money and Financial Institutions

Introduction
When you make a decision to be an entrepreneur, the major aim of your business is to make profit and accumulate money. But also, you must be able to secure your money and get financial support when you
have to, for example when you want to expand your business. The presence of money and financial

institutions smoothens business operations. Money cannot be kept inside one’s house to avoid troubles like theft, misuse and poor accountability, among others. Therefore, there are financial institutions that work alongside businesses on the issues of money. In this chapter, you will appreciate the importance of money and financial institutions in conducting business. There exist many types of financial institutions like the Central Bank, commercial banks and micro-finance institutions, among others. They all play different roles in business.

Money

Reflective questions
1.Do you know what you can use money for?
2 What is your opinion on the statement “money is what money does”?
3 Identify where You can keep your money and why.

Evolution of money

Study Figure 4.1 carefully and share in your group what you understand from it

Reading about the stages in the evolution of money activity 4.1
In your group,

1. Read the text that follows and perform the tasks that follow•.
   Evolution of money
   History does not mention any person who Invented money. This is because money was not invented but rather it evolved (changed) gradually to its current state. This has been a long process that
   took place over many centunes.
   Stage one: Barter trade
   The earliest form of exchange was barter trade, i.e. direct exchange of goods for goods and services for services. For example, a farmer with surplus maize exchanges some of his maize for some meat from the hunter. You give something and receive something.
   Stage two: Commodity money
   The barter system later evolved into the use of commodity money. Some few items were more readily acceptable than others and so became a medium of exchange. Such commodities had value in themselves and were chosen for a number of reasons: some were easy to store, some had
   high value densities (high value in a small quantity like gold). others were portable, while others were durable.

The sellers would accept the receipts being aware that they could, at any time, claim the gold from the goldsmiths by presenting the receipts. These receipts later gained recognition and people could use them to settle debts because they were as good as gold itself, i.e. they could be converted to gold
whenever they were presented to the goldsmiths (convertible paper money).

The work of the goldsmiths was later taken over by the banks, whereby the gold receipts were standardised into paper money. This paper money was fully backed by gold: it was as good as
gold and convertible to gold. Each bank printed and circulated its own receipts (banknotes).
and so many banknotes circulated side by side. This continued until government and the Central Bank took the of Issuing notes. The gold standard (backing up all paper money with gold) was
adopted as a key of money management for a very long time. Under this system, all the notes issued were fully backed and convertible to gold.

2. Choose one stage and explain its advantages and disadvantages to the class.
3. Share your findings with the class.

Barter exchange
In the traditional days, people would exchange goods for goods or services for services. This was more because at that time money was not yet in use. Figure 4.2 is a true indicator of a barter market.

Advantages and disadvantages of barter exchange

Barter exchange had a number of advantages but it got phased out due to a number of its associated shortcomings. activitY 4.2
Explaining barter exchange in your group, read the following passage carefully and do the
tasks that follow: Before money came into being Before money came into being, people used to exchange what they had for what they didn’t have.

They exchanged goods and services for other goods and services. For example, a person with fruits exchanged surplus fruits and got something he or she needed. If a medicine man cured someone’s illness, he would be given a goat or a hen for the services given. This system was suitable because there was no medium of exchange in the form of money as we have it today. Even today, people still exchange goods and services though on a small scale.

A learner who has many exercise books but has no pens may exchange some of the exercise books for a pen from another learner who has many pens and wants an exercise book. This is called a barter system of exchange. A few communities in rural areas still use barter exchange for some food items although money has come to be used as a standard of exchange.

Tasks
1. Role-play the process of doing barter trade.
2.If your school allowed your parents/guardians to pay your school fees using the barter system, what do you think would be the advantages and disadvantages of this arrangement?
3 Present your work to the class.

4.1.3 Money, its forms and functions
When you need goods and services, you must have money. But money itself is not important: you only like what it can buy for you. For example, if you are thirsty and buy a bottle of soda, you enjoy the
soda, not the money you spend on the soda. Money comes in different forms. Money can be in the form

of paper or coins. Paper money was first introduced by goldsmiths in the form of receipts labelled with letters “IOU”, which means “l owe you notes”. The merchants would deposit an amount of gold in the goldsmiths’ strong room. The goldsmith who would, in turn, issue receipts promising

to repay the amount demanded and these receipts were known as “promissory notes” Later on, instead of collecting gold, traders began to transfer receipts in exchange for goods and services. The first receipts to be issued would
readily be promissory notes fully backed by gold, later issued notes were not fully backed by standards circulating as a medium of exchange. Coins, on the other hand, are made from copper or silver. Money serves many functions.

Take an example: when you have money, you can buy products like food, clothes and the like. You can sell some products for money and buy products that you do not have
using money, and you are able to save using money.

Activity 4.3
Explaining the meaning of money, forms of money and functions of money
In your group, do research to:
1Find out:
a) The meaning of money.
b) Materials used in making paper money and coin money.
Come up with a statement that best describes each function of money as outlined below.
Do a write-up of your work and present it to the class.

4.1.4 Saving money and developing the culture of banking
When you work and get money, you must put a certain amount from your income aside for future use. For example, when you want to buy a bicycle, by the time you reach Senior Five, you can now start to keep part of your pocket money or any other money that you get so that over that period, you can build

up your savings and buy yourself a nice bicycle. Saving money is a form of security: you may fall sick, find a cheap product you would like to buy like a television set, you may have to gift your parents on Christmas, you may wish to invest in, for example, animal keeping. All these are possible when you start saving so that you accumulate money for all these activities in future.

Answering questions about saving and banking
Activity 4.4 In groups, you are going to gradually develop the spirit of
saving under the guidance of your teacher.
1. Decide on the group chairperson and treasurer. Agree on the amount each one of you is to save.
2 Develop criteria for recording members’ savings.
3Discuss with your teacher about opening up a savings account with any bank near the school.
4 Ensure that there are weekly meetings to evaluatethe performance of the group based on which plenary presentations will be made.

Banking

People with money that they do not want to use in the near future take it to a safe place away from home. This place is called a bank. On the other hand, people who want money for business, for example,
starting up a new retail shop, constructing business houses and the like, go to the bank and ask for loans

and later pay back the money borrowed with an additional amount called “interest”. Banking, therefore, involves all activities that banks do while serving the public such as lending money and safeguarding money deposited with them by the public.

4.1.5 Meaning of banks and banking Finding out the meaning of a bank and banking
activity 4.5 In your group,
1.Brainstorm the meaning of a bank and banking.
2 List down all the banks that are operating in your local area.
3 How are the banks you have listed similar and how are they different?
4 Do a write-up of your work and share it with other groups in class.

4.1.6 Types of banks
The banking system in Uganda consists of many different types of banks, depending on their objectives, the amount of capital that they have and the way they are owned. Some are owned by the government, others by private individuals as companies and others by the community as associations.

Activity 4.6
Discussing the types of banks in your community. You may use the available research sources of the library or internet.

Figure 4.4
In your group,

1. Study Figure 4.4 and identify the types of banks in it.
2. Discuss and derive the meaning of what they are.
3. Do a write-up nf your work and present it to the class.

4.1.7 Challenges faced by banks in Uganda
and their solutions Banks in Uganda face a number of challenges that affect their smooth
running. These include low savings, low demand for loans and poor infrastructure, among others.
Discussing the challenges faced by banks in Uganda Activity 4.7
In your group,
i) Discuss the challenges faced by banks in your community.
ii) Share your findings with the class.
4.1.8 Solutions to challenges faced by banks Activity 4.8
Discussing solutions of banking in Uganda In your groups,
I. Suggest solutions to the challenges discussed in the previous Activity.

2. Do a write-up and present it to the class.

4.1.9 Rights of bank customers
Every commercial bank has a customer service charter that outlines specific rights that bank customers enjoy. This means that if a bank violates customer rights or the customers feel that the products offered by the bank are not fair and unsuitable, then a customer can complain and be helped.
ctivity 4.9
Discussing the rights of bank customers In your group,
I. Read and discuss the following rights of bank customers.

2. Do a write-up of what you have discussed and present it
   to the class.

olsowhore in tho world should enjoy the following
Hight to fair treatment: There should be no discrimination on of gender, colour, age, religion, caste and physical abilities offering services and products to customers.
Hight to transparency: Fair and honest dealing. Bank documents should be in clear and simple language to be effectively understood by customers. Product prices, key risks, terms and conditions
should be brought to the customer’s attention in writing.
Hight to suitability: Banks need to first do research and surveys they introduce any product in the market. Therefore, banks Will sell products after taking into account customers’ needs, jl/jancjal circumstances and understanding.
Hight to privacy: Banks are bound to keep safely all customer documents and information for ten years. This must not be shared With anybody unless officially communicated by courts of law.
Also, information can be shared upon receiving consent from the
customer,

Hight to address dissatisfaction and be compensated: In where the bank violates customer rights or a customer is not satisfied with the products, services and complaint feedback offered by the bank. then the customer can sue the bank. If the attracts compensation, then the party can be compensated.
Right to draw cheques against the customer’s credit
balance: Customers can withdraw any money relating to their account balances without any restrictions attached.
information statement concerning the customer’s account:
Customers have the right to access all the information relating to thojr accounts either at a cost or free of charge. Right to sue a bank when a cheque is wrongfully dishonored for tho low or damage.

the central bank

Keywords by the end of this sub-topic, you will be able to: central bank a) understand the meaning of a central bank.
b) know the functions of the central bank.
Reflective questions

1. Have you ever bothered to think about where money is made?
2. Do you have any idea who is responsible for printing the paper notes and minting the coins that we use as money in Uganda?

Bank of Uganda (BOU) is the central bank of the Republic of Uganda The primary purpose of the central bank is to keep the prices of products affordable to the citizens and to make sure that they are safe while doing business. Together with other institutions, it also plays a pivotal role as a centre of excellence in supporting the cnuntry to develop. It does not receive deposits or allow withdrawals from individuals.
4.2.1 Understanding the central bank
Bank of Uganda was established in 1966 by an Act of Parliament. It is a financial institution established by the government to print and issue the country’s currency notes and to mint coins. It supervises all
financial institutions in the country and controls the amount of money

4.2.2 Functions of the central bank
The central bank is the principal financial institution that manages and tnonitors all financial institutions. To start operating any financial institution, one must get permission from the central bank. It therefore,
supervises all the other financial institutions.
activity 4.10
Explaining the functions of the central bank In your group,

1. Study Figure 4.5 carefully.
2. Discuss it.
3. Do a write-up of what you have understood and present
   it in class.

Keywords

• commercial bank advance
  By the end of this sub- topic, you will be able to:
  a) know about commercial banks.
  i b) understand the role of commercial banks.
  Reflective questions

1. Have you ever been in a commercial bank?
2. Which services have you ever received from a commercial
   bank?
3. Which examples of commercial banks do you know?

Commercial banks are concemed with commerce. They provide finance to business people mainly and allows business people to save money with them. Commercial banks lend money on which they charge an interest. When you save your money with them, they give you interest. There are numerous commercial banks in Uganda. In this section, therefore, you are going to appreciate the role of commercial banks.
4.3.1 Understanding commercial banks
Do you know that there are banks that keep people’s money safe, advance loans and create more deposits from the initial money deposited by customers? These banks are called commercial banks. These banks are widespread in our communities even though they are mostly found in urban areas where they have more potential customers.

Activity 4.11 Identifying examples of commercial banks in your community
In your groups, brainstorm and mention examples of commercial banks that you know. Some of such banks have branches in your respective communities.

.3.2 The role of commercial banks

In your group,
I. Read and discuss the following roles of commercial banks: They accept deposits and safeguard them on behalf of their customers. This is done by opening an account with the bank. They give loans and overdrafts to their customers. The loans may be short-term, medium-term or long-

term. They exchange currencies for their customers. This aids international trade. They keep valuable articles and documents in safe custody on the behalf of their clients, e.g. wills, land
titles, etc.
They facilitate easy and quick payments of debts on behalf of their customers through the use of cheques
or standing orders.
They look after the property of deceased customers and distribute their assets as laid down in the will.
They give financial advice and offer technical services to customers on business and money.
They create degx)sit money (secondary deposits) through the process of credit creation.
They participate in the implementation of government policies, for example monetary policy,

O They facilitate the transfer of money from one place to another by the use of traveller’s cheques.
Compare and contrast commercial banks with other types of banks. Do a write-up of what you have discussed and present it to the class. Note: A standing order is a document from the customer authorising the bank to make regular payments on his/her behalf to his creditors, for example rent, insurance expenses, water bills, electricity bills, etc.

Types of Bank Accounts

distinguish between different types of bank accounts. know features of different accounts and the difference between investment and savings. use a cheque for cash deposits and cash withdrawals. know the procedure for opening a bank account.

Reflective questions

1. Have you ever used a bank account?
2. How did you use a bank account?
3. Which services were you paying for?
   you have seen people going to the bank to keep money and for other services. If you want to get services from the commercial banks, you must open a bank account with them where you can keep/save money, pay others by cheque and be paid by others using a cheque. An
4. account is the identity of a bank customer where his/her transactions with the bank are recorded.
   There are various bank accounts one can open up like:
5. Savings account
6. Current deposit account
7. Fixed deposit account

4.4.1 Types of Bank Accounts Activity 4.13

visiting a nearby financial institution to discover the
different types of bank accounts

1. As a class, you will be guided by your teacher to carryout a field study by visiting a nearby bank and finding out the types of bank accounts that one can open up.
2. Compare your findings with the bank accounts in the write-up below.
3. In your group, write a report and present it to the class. Savings bank account A savings bank account is an account which is designed to promote and encourage the habit of saving among individuais and organisations in the country. If a person has limited income and wants to save
4. money for his/her future needs, the savings bank account is most suited for his/her purpose.
   This type of account can be opened with a minimum initial deposit that
   varies from bank to bank.

General features of a savings bank account
A minimum initial deposit is required at the time of opening it. Withdrawals can be made either by signing a withdrawal form or by issuing a passbook or by using an ATM card.
Withdrawing may be limited to a stated amount and a number of times a week in some financial institutions. Interest is paid to the account-holder based on the balance on
account at the end of a given period, like monthly or annually. The rate of interest on a savings bank account varies from bank to bank and also changes from time to time. The account holder is expected to maintain a required minimum balance on the account all the time and one cannot withdraw
money if the account balance is below the required minimum level. Money can be deposited on the account any time of a working day. Cheque books are not given to savings account holders.

Current deposit account
A current account is a type of deposit account maintained by individuals who carry out a significantly higher number of transactions with banks on a regular basis. Current accounts also allow making payments to creditors through the cheque facility offered by the bank. This deposit account is designed

for transactions by cheque, where the customer can draw on demand as long as there are sufficient
funds on the account and the bank is open for business. It may be operated by individuals as a personal current account and by companies, partnerships, societies, clubs and associations as non-
personal accounts.
Fixed deposit account
A fixed deposit account allows an amount of deposits to be made for a specified period. This period of deposit may range from 15 days to three years or more during which no withdrawal is allowed.

However, on request, the depositors can obtain money before its maturity. In that case, banks give lower interest than what was agreed upon. The interest on a fixed deposit account can be withdrawn at certain intervals of time. At the end of the period, the deposit may be withdrawn or renewed for a further period.

A cheque

When you open a bank account with a commercial bank, you can keep your money with the bank where you have an account. However, you are allowed to withdraw your rnoney from the bank at any time or you can pay other people through your bank by authorising the bank to pay them using your rnoney that you kept With them. For this to be possible, you must use a banking document called a cheque.

I

activity 4. Learning about a cheque and how It is used Intransactions In your group,

1. Study figure 4.7 carefully and share With groupmates
   what you understand from it

Types of cheques
Cheques are of different types and include:
Post-dated cheque. This is a form of cheque paid to someone before its maturity date, that is to say, before the date indicated on it is reached. This cheque cannot be deposited on account or presented to the bank for payment until the date indicated on the cheque.
Stale cheque. This is a form of cheque that is presented to the bank six months after its date of payment.
Blank cheque. This is a cheque that is written with the amount of money to be effected to the payee missing.
Bank draft cheque. This is a cheque drawn by the bank itself and is drawn only after a person requesting it has its value to the bank (amount of money equivalent to which he is requesting). It is a cheque drawn by one bank ordering another bank to make a payment to the person or organisation named. This is commonly used in paying school fees.
Honoured cheque. This is a cheque that has been issued by the drawer and cashed by the bank (drawee). It is a cheque on which payments have been effected.
Open cheque. This is a cheque that is not crossed, so that it can be presented and paid across the counter by the bearer or a named person on his order. An open cheque is not secure as once it gets lost, whoever picks it can easily obtain cash against it,

4.4.3 Procedure for opening a bank account

When you want to open up a bank account, there are steps that you follow. Opening up a bank account also has requirements that include:

The steps followed in opening up an account are summarised in the following three steps.
Firstly, the client acquires two reference letters, one from a bank customer and another one from the employer. In the case of non- employed a local council (LC) recommendation is provided, and
for students, a letter from the head teacher.
Secondly, the client provides a national identity card, passport, driving permit or registration certificate in the case of partnership and joint stock companies to be submitted together with a filled in form with the
type of an account one needs from the bank.
Lastly, the applicant is issued with an account number and makes an initial deposit. After a little while, the applicant is provided with a cheque book or ATM card, depending on the type of account opened
by the account holder.

Role-playing the procedure o’ opening a WVity4.’S account In your group,

1. Discuss the requirements for opening a bank account.
2. Role-play the steps involved in opening a bank acxount.
3. Present to the class.

Micro-finance Institutions
By the end of this sub-
Keywords topic, you will be able to
microfinance a) understand the meaning of
micro-finance institutions.
institutions
b) know the types of micro-finance institutions.

4.5.1 Understanding micro-finance
institutions
In Uganda at the beginning of the 1990s, there was no specialised formal financial institution delivering micro-finance but a handful of non- governmental organisations and government programmes performing the role.
However, the last 15 years have experienced a rapid expansion of the industry in that by December 2005, the number of active micro-finance institutions was about 750. The majority of these were savings and
credit cooperatives (SACCOs).
The first main micro-finance institutions was FINCA and Uganda Women Finance Trust (UWFT) in the 1990s. In 2004 and 2005, their activities were regulated by Bank of Uganda following the enactment of the Micro-finance Taking Institutions (MDI) Act of 2003.
Micro-finance providers in Uganda reach out to low-income families and businesses in both rural and urban areas. Take the example of owners of small retail shops near your home, hair salons, boda boda
riders, brick makers, metal fabricators, local market vendors and youth
projects, among others.

All these need money to meet their basic needs and for usiness but- they cannot get money from big financial institutions like commercial banks because they do not have collateral security. Thus micro finance institutions support them to access money. A micro-finance institution, therefore is an organisation that accepts savings andoffers financial services to low-income earners. It accepts deposits in
the form of savings and offers loans to the members. Examples of micro-finance institutions in Uganda include:
FINCA Uganda Limited
Pride micro-finance Limited
Uganda Finance Trust Limited
UGAFODE micro-finance Limited
Action On Disability
Adjumani Youth Association
Kasaala Savings & Credit Society Ltd.
All Nations Lira
Bamunanika Cooperative Society
Bigaijuka Cooperative Society
BRAC Uganda
Buddo Growers Cooperative
Bufumbira Island Development Association
Bukedea Women’s Strugglers Association
Christian Charity Centre
Wazalendo Savings and Credit Cooperative Society (WSACCO).
There are hundreds of micro-finance institutions across Uganda.

4.5.2 Types of micro-finance institutions (MFIs)
The micro-finance institutions iri Uganda are under what is called Ti« 4 in the classification ot financial institutions by Bank of Uganda, a regulator of all financial institutions in the country. Tier 4 institutions are engaged in micro-finance operations that are not licensed by the Bank of Uganda. Tier 4 typically consists of
SACCOs, member based organisations, such as village savings and credit institutions, financial service associations, and rotating and accumulating savings and credit associations, various non-
governmental organisations (NGOs) and community-based organisations engaged in micro-finance activities too.

Activity 4.16
Classifying micro-finance institutions basing on their types In your group,
1.
Carry out research about micro-finance institutions operating in your local area and use their examples to categorise them under the following types:
i)Credit cooperatives
ii)Village credit and credit institutions
iii)Rotating and Accumulating Savings
iii)NGO’s (Non-Govemment Organisations)
Credit associations
iiv)Member-based organisations
Savings and Credit Cooperatives (SACCOs)
2.Do a write-up on how micro-finance institutions have
given individuals or businesses a bigger opportunity than
banks.
3 Present it to the class.

Electronic Banking

Reflective questions

1. Do you know how one can send money or receive money using technology tools like a telephone?
2. Have you heard of and used mobile money?
3. How do Ugandans who live in the diaspora send money to their families or friends back home?
4. How do people buy products online?
5. How are VISA cards or MASTER cards used?
   When you have cash money, you can go to the nearby mobile money agent and deposit it on your SIM card. This enables you to pay for goods and services, for example airtime, electricity, school fees and transport, among others. You can also transfer that money to other people’s phone numbers or
   to your bank account using codes. Besides using phones, there is a range of technology tools available being used by banks to transfer the

money by using the internet and electronic devices like computers and smartphones. This describes electronic banking.

4.6.1 Understanding electronic banking
Modern technology is today being used to transfer money. It is much faster and more convenient compared to the traditional way. First was the introduction of ATMs, followed by mobile banking, internet banking and then agent banking.
Electronic banking, therefore, is a form of banking in which funds are transferred through an exchange of electronic signals rather than through an exchange of cash, cheques, or other types of paper documents.

Reading the about electru•k
In your group, read the following passage carefully and do the tasks that follow:
Gone are the days
Gone are the days when you had to travel distances to a bank to do transactions. Today, the internet has simplified life with the introduction of online banking. Here, financial transactions are conducted over the internet through a bank’s secure website. Online banking is almost similar to traditional banking but it is delivered via the internet using a device that can access the internet. These may be smartphones, laptops and tablets, among others. Online banking may also be referred to as e-banking, virtual banking or web banking, among others.

An advantage of online banking is that it is fast, reliable and convenient, as it offers a 24/7 service. Some banks have mobile applications to enhance the internet banking experience.
Tasks
I. Suggest reasons why you think electronic banking is successful in Uganda or not.

2. Do a write-up of your work and share it with other
   groups.

4.6.2 Electronic banking products
Products of electronic banking are the different services that financial institutions and telecom companies provide to their customers that involve the transfer of money across the internet and devices electronically.

There are many different types of e-banking products or services which you can use for various bank transactions. Below are some of the most popular ones in Uganda.
Mobile banking: Most banks have of late also started using an application for mobile banking. Just like the online portal of the bank used for internet banking, you can use the mobile banking application
installed on either your computer or phone for many different types of banking transactions.
The apps can also be used for transferring funds, checking account statements, locating the nearest ATM, and for other banking services.
ATM or automated teller machine: The teller machine is also an electronic computerised telecommunication device which enables you to withdraw funds, deposit funds, change your debit card,
personal identification number (PIN), and use other banking services.

It eliminates the need to visit a bank and to do these transactions
through a human teller.
Internet banking: This is a type of e-banking service which allows
you to do several financial and non-financial transactions through the
internet.
You can use your PC or laptop and an internet connection to use
this facility. With the help of internet banking, the customer can
transfer funds to another bank account and check his or her account
transactions.
Telephone banking: By dialling the given tele-banking number through a landline or a mobile from anywhere, the customer can access his account and by following the user-friendly menu, all banking activities can be done through Interactive Voice Response (IVR) system. He or she can then effect any desired transactions.
E—cheque: An e-cheque is the electronic version or representation of a paper cheque. This can be used to effect transactions online.
Bill payments: Payments of electricity, water, telephone bills and television service bills can be effected through internet banking by the customer without going to the offices of the service providers.
Debit card: Debit cards are also known as check cards. Debit cards look like credit cards or ATM (automated teller machine) cards, but operate like cash or a personal cheque. Debit cards are different from credit cards. While a credit card is a way to “pay later”, a debit card is
a way to “pay now”.

When you use a debit card, your money is quickly deducted from your savings account for your daily transactions. This card is connected to your bank account and you can use the funds from your account directly through this card and you can also use it during online shopping. Other popular services covered under e-banking include: Credit cards, smart cards and electronic funds transfer system (EFT).
Use the internet to find out more about them.

4.6.3 Benefits and challenges of electronic banking
Electronic banking has brought many innovations such as simplifying money transfer and payment systems. You no longer need to carry cash but store it online and access it conveniently. However, electronic banking has its challenges, like being expensive in terms of buying
devices to use, and need to be literate, among others.

Finding out the benefits and challenges of electronic banking
As a class. listen to the presentation of the guest speaker on
e-banking, products of e-banking, benefits and the challenges
ot online banking.
In your group, write a report on the presentation in your note
books and share it with the class.
Sample Activity of Integration Context
Gloria Achan is a widow in the village who used to sell sugarcane
from her sugarcane plantation. She used to keep her money from this
sugarcane business under her mattress. One day, robbers attacked her
home and stole all her money. She had to close down the business.
Now, she is planning to start the business again.

Task Design a leaflet for Gloria in respect to her situation.

Chapter Summary
In this chapter, you have learnt about:
the evolution of money.
the advantages and disadvantages of barter exchange.
understand the meaning of money, and its forms and functions.
saving money and developing the culture of banking.
the meaning of banks and banking.
the of banks,
the challenges faced by banks in Uganda,
the solutions to challenges faced by banks.
the rights of bank customers.
the meaning of a central bank,
the functions of the central bank.
commercial banks.
the role of banks,
different types of bank accounts.
features of different and the difference between investment and savings.
using cheque, for cash deposits and cash withdrawals.
the procedure for opening a bank account.
the meaning of micro finance institutions.
the of micro-finance institutions.
electronic banking.
electronic banking products.