EPF 6 - Knowledge of the Nation’s Financial System (Money & Banks)

EPF 6 - Knowledge of the Nation’s Financial System (Money & Banks)

EPF 6 - Knowledge of the Nation’s Financial System (Money & Banks) But first, some “Jargon” (Technical Language) Durability Portability Divisibility Uniformity Acceptability Medium Exchange Store of Value Measure Commodity Fiat Return Intermediaries Facilitate Transactions and . . . Financial Institutions Financial Market Place Financial Transactions

EPF 6 - Knowledge of the Nation’s Financial System (Money & Banks) But first, some “Jargon” (Technical Language) Durability Portability Divisibility Uniformity Acceptability Medium Exchange Store of Value Measure Commodity Fiat Return Intermediaries Facilitate Transactions and . . . Financial Institutions Financial Market Place Financial Transactions See EPF 6 Vocab. Quizlet

EPF 6 - Knowledge of the Nation’s Financial System (Money & Banks) Complete the EPF 6 Pretest in Google Classroom

EPF 6 - Knowledge of the nation’s financial system Objective – Be able to define money and its characteristics

EPF 6 - Knowledge of the nation’s financial system Objective – Be able to define money and its characteristics MONEY: Anything widely accepted as final payment for goods and services or . . .

EPF 6 - Knowledge of the nation’s financial system Objective – Be able to define money and its characteristics MONEY: Anything widely accepted as final payment for goods and services or . . . A tool used to measure value

EPF 6 - Knowledge of the nation’s financial system Objective – Be able to define money and its characteristics MONEY: Anything widely accepted as final payment for goods and services or . . . A tool used to measure value Characteristics: Durable Divisible Limited in Supply Portable Uniform Accepted

EPF 6 - Knowledge of the nation’s financial system Objective – Be able to define money and its characteristics MONEY: Anything widely accepted as final payment for goods and services or . . . A tool used to measure value Durable - Bills & coins can be easily replaced should they become damaged or worn out

EPF 6 - Knowledge of the nation’s financial system Objective – Be able to define money and its characteristics MONEY: Anything widely accepted as final payment for goods and services or . . . A tool used to measure value Divisible – Divisibility indicates that money can be broken down into smaller values

EPF 6 - Knowledge of the nation’s financial system Objective – Be able to define money and its characteristics MONEY: Anything widely accepted as final payment for goods and services or . . . A tool used to measure value Limited in Supply – Ensures that money holds its value

EPF 6 - Knowledge of the nation’s financial system Objective – Be able to define money and its characteristics MONEY: Anything widely accepted as final payment for goods and services or . . . A tool used to measure value Portable – Portability says that money can easily be transported from one location to another

EPF 6 - Knowledge of the nation’s financial system Objective – Be able to define money and its characteristics MONEY: Anything widely accepted as final payment for goods and services or . . . A tool used to measure value Uniform – Uniformity provides for a standard look to the various denominations of bills and currency

EPF 6 - Knowledge of the nation’s financial system Objective – Be able to define money and its characteristics MONEY: Anything widely accepted as final payment for goods and services or . . . A tool used to measure value Accepted – Acceptability requires that the money be commonly agreed upon as a value exchange method

EPF 6 - Knowledge of the nation’s financial system Objective – Be able to define money and its characteristics MONEY: Anything widely accepted as final payment for goods and services or . . . A tool used to measure value Lastly, money is all of a country’s coins, currency AND checking account deposits

EPF 6 - Knowledge of the nation’s financial system Objective – Be able to describe the role of money in an economy

EPF 6 - Knowledge of the nation’s financial system Objective – Be able to describe the role of money in an economy The Role of Money is to . . . A.) Act as a medium (method) of exchange * For example, Instead of an artist giving a grocer a sculpture in exchange for milk, he can give money

EPF 6 - Knowledge of the nation’s financial system Objective – Be able to describe the role of money in an economy The Role of Money is to . . . B.) Encourage specialization * For example, instead of trying to do everything someone needs to do to just live, I can focus on just one job and use the money I receive from that job to buy what I need

EPF 6 - Knowledge of the nation’s financial system Objective – Be able to describe the role of money in an economy The Role of Money is to . . . C.) Act as a “store” (holder) of value * For example, we can put money in something (a bank or an investment) and it’ll be worth something down the road. A house I buy now and want to sell in 20 years.

EPF 6 - Knowledge of the nation’s financial system Objective – Be able to describe the role of money in an economy The Role of Money is to . . . D.) Act as a measure of value * For example, when discussing a trade (barter) with someone, we can refer to the number of dollars something is worth in comparison (ex: Pokémon Cards).

EPF 6 - Knowledge of the nation’s financial system Objective – Be able to describe the role of money in an economy The Role of Money is to . . . E.) Be a commodity all by itself * For example, if you were stuck on an island, you and the other survivors might use coconuts as money for trade (instead of eating them).

EPF 6 - Knowledge of the nation’s financial system Objective – Be able to describe the role of money in an economy The Role of Money is to . . . F.) Be a “Fiat” (Government decree) * For example, By “Fiat,” Big Daddy on the Island Kingdom of Mocha decreed clams to be the island’s currency.

EPF 6 - Knowledge of the nation’s financial system Objective – Be able to describe the role of banks in our economy

EPF 6 - Knowledge of the nation’s financial system Objective – Be able to describe the role of banks in our economy Financial market places (banks) bring people together who have money to lend and are willing to take risks to earn a return with people who want to borrow for a specific purpose

EPF 6 - Knowledge of the nation’s financial system Objective – Be able to describe the role of banks in our economy The Role of Banks, a Short Video https://www.youtube.com/watch?v=NXzAAcbMydY

EPF 6 - Knowledge of the nation’s financial system Objective – Be able to describe the role of banks in our economy For example, consider the Bank of North Dakota’s Mission http://www.pbslearningmedia.org/resource/26bd3a2b-2a75-4121-a32d-95c287f298bf/the-bank-of-north-dakota-the-bank-today/

EPF 6 - Knowledge of the nation’s financial system Objective – Be able to describe the role of banks in our economy Lastly, consider PBS’s Ascent of Money Video http://www.pbs.org/video/1170821435/

EPF 6 - Knowledge of the nation’s financial system COMPLETE THE EPF 6 QUIZLET

EPF 6 - Knowledge of the Nation’s Financial System (Money & Banks)