The money kept in cash can be lost or stolen and can lose its purchasing power. The keeping of money in a bank account offers increased safety and can generate gains in the form of interest. Investments can yield higher profit, but the involved risks are also bigger. Information about the financial-banking system is available in the guidebook on the consumer’s protection on the financial-banking market of Moldova that was compiled within the financial education project “Learn. Give Sense to Money” that was launched by the National Bank of Moldova and the National Commission for Financial Markets, IPN reports.
Saving money in bank accounts is safer than saving money in cash as the cash can be stolen or lost in an accident, such as a fire. Moreover, the money kept in cash can decline in value because of inflation, while the interest paid on money kept in the bank diminishes or compensates for the effect of inflation or represents a gain for the client. The money can be also kept in the checking account, but its saving in a special account with a higher interest rate implies also a psychological effect as it is more tempting to spend money to which one has easy access.
The guidebook is intended for potential consumers of financial-banking services who want to learn to manage their incomes and costs, to make purchases and to inform themselves about the protection measures when using banking products and services.
In this period of uncertainty, products and services adjusted to the personal financial situation are necessary more than ever. For many persons, the financial services are of great complexity, either it is about payments, deposits, loans or even investments.
In a market economy where the prices of goods and services are formed exclusively from the interaction between supply and demand, with limited intervention on the part of the state, the prices can anytime modify. Inflation is when there is a generalized rise in prices and services. In other words, fewer products can be bought with the same sum of money.
