r has shown many negative reactions among non-Muslims to the move by the Kelantan government. Many have expressed incredulous comments, with some saying the decision was a case of "one upmanship" in Malay politics that would not help the country in the long run.
1.0 Theory
1.1 Function of Money
Money is an object that is generally accepted as payment for goods and services. The function of money is as a medium of exchange, unit of account and the store of value.
Medium of Exchange : The money is a good medium of exchange as it enables the goods and services to be carried out smoothly from the producer or seller to the customer. If without the money, the barter system will appear. It is a system where goods are directly exchanged to others goods.
Unit of Account : The money has its value. It allows us to record the total monetary value in a given transaction. It uses to pay for a good or services that we buy.
Store of Value : The money is good form of storing value for future consumption. It can be stored in many place like the bank moreover it can be readily for taking out without facing any problem of deterioration and liquidity.
1.2 Form of Money
Money basically can be divided into Fiat money and Commodity money.
Fiat money is money that has an extrinsic value and it can be converted into a valuable commodity. It is a type of money whose value comes from the public's general willingness to accept in exchange for other goods. The money has its value because of the government recognized it as a terms of value that can be exchanged with other goods and services.
Commodity money is the money that has its own value. Commodity money has an intrinsic value which means that items already have its value even if it is not incur in the transaction of money.  Examples of commodities that have been used as mediums of exchange include gold, silver and copper. The Dinar Money System is actually based on both Gold as Dinar and also Silver as Dirham.
1.3 Money Defined
In the money defined there are ways to calculate the M1 and M2. The M1 consists of the sum of currency and the checkable deposit. While the M2 is the sum of the M1, small time deposits, money market mutual funds and the savings deposits. The money is valuable in its term as it is acceptable by all the people around the world. Money is legal tender as it is recognized by the government and the money is relatively scarce in the economic.
1.4 Function of Central bank
The central bank is a monetary authority that has the right to issue coins and paper notes. It acts as a banker's bank as the entire private owned commercial banks are required to place a certain amount of deposit with the central bank. This deposit is used to facilitate the debts between the central banks and the commercial banks. Besides that the central banks also acts as a banker to the government as when the government faces any financial problem, the government will sell or buy the government bonds to the bank. The government has two major accounts with the central bank. One is dealing with the government revenue and expenditure and the other is dealing with the country's leading and borrowing funds. The central bank manages national debts that will act behalf of the government meanwhile pay the interest to the current holders of the government securities. The central bank act as government advisor who always advise the government on financial position of the country and of
