1 / 182

Chapter 10

Chapter 10. Money. Catch Me if you can, scene 9. Table of Contents. What is Money Timeline Federal Reserve Money Slide Show Inflation Could you survive Taxes. Money. Anything that serves as a medium of exchange, a unit of account, and store of value

jolie
Download Presentation

Chapter 10

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 10 Money Catch Me if you can, scene 9

  2. Table of Contents • What is Money • Timeline • Federal Reserve • Money Slide Show • Inflation • Could you survive • Taxes

  3. Money • Anything that serves as a medium of exchange, a unit of account, and store of value • Without money, people get things from bartering

  4. Barter • The direct exchange of one set of goods or services for another • Usually works only in small populations http://oneredpaperclip.blogspot.com/

  5. Problem with Bartering • Have to find someone who wants what you have AND who you want what they have

  6. Problem with Bartering • Both products have to be “equivalent in the eyes of the owners”

  7. Example • You have: Cow • Someone else: 2 Chickens

  8. Currency • Coins and paper bills used as money • (historical examples: cattle, salt, dried fish, furs, precious stones, gold, silver, porpoise teeth, rice, wheat, shells,olive oil.)

  9. Bank • An institution for receiving, keeping and lending money

  10. Three Uses/ Functions of Money • Medium of Exchange • Unit of Account • Store of Value

  11. Medium of Exchange • People accept money in trade for goods and services

  12. Unit of Account • Also known as VALUE • A means for comparing the values of goods and services

  13. Store of Value • Something that keeps its value if it is stored or held on to rather than used • (exception= inflation)

  14. Six Characteristics of Money • Durability • Portability • Divisibility • Uniformity • Limited Supply • Acceptability

  15. Durability • Can withstand wear and tear • Used over and over again • BAD examples: Wheat, Olive oil

  16. Portability • Can take it anywhere Bad example: cows, boulder

  17. Divisibility • Can be easily divided into smaller denominations • Bad Example: stones

  18. Uniformity • Any 2 units of money must be the same for accuracy Bad example: fish

  19. Limited Supply • If too much , then No longer useful • Bad example: Pebbles, Sand

  20. Acceptability • Able to exchange the objects that serve as money for goods and services

  21. Three Sources of Money • Commodity Money • Representative Money • Fiat Money

  22. Commodity Money • Objects that have value in themselves and that are also used as money • Good example: salt, corn, cattle, cotton, tobacco

  23. Representative Money • Objects that have value because the holder can exchange them for something else of value • Good example: IOU, silver, gold

  24. Fiat Money • Legal tender • Money that has value because the government has ordered that it is an acceptable means to pay debts • Good example: coins, paper money

  25. Timeline Events in American Banking

  26. By 1860: Approximately 8,000 different currencies existed in the United States

  27. Who was the U.S. President from 1929 – 1933? • Herbert Hoover

  28. Herbert Hoover • Hoover Hotel: Cardboard Box • Hoovervilles: Multiple cardboard boxes • Hoover Flag: Empty pockets turned inside out

More Related