Bell Ringer: We’re going to begin talking money. Do you know which presidents (or other people) are listed on the following currency/coin? Write what.

Tuesday, April 21

Bell Ringer: We’re going to begin talking money. Do you know

which presidents (or other people) are listed on the following currency/coin? Write what you know and we’ll review the correct answers.

$1--?$100? $2--?1¢? $5--?5¢? $10?10¢? $20?25¢? $50?

Today:--Chapters 12&13 TEST—How did you do? What’s your current Bus. Econ grade? What can you still turn in??--LNE Winners of SMG??!!??--Functions & Characteristics of Money

Period 2/4 SMG Winners

Class Name# of Teams Requested

Team IDs Rankings Total Equity Password

Advisor ~ NE_40_T292215 xxxxxxxxx

Bus Econ Pd 2 5

NE_40_ZZ230 NE_40_ZZ231 NE_40_ZZ232 NE_40_ZZ234 NE_40_ZZ235

160204172177219

$100,327.71$99,766.95$100,200.48$100,173.72$98,907.26

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Bus Econ Pd 4 6

NE_40_ZZ236 NE_40_ZZ237 NE_40_ZZ238 NE_40_ZZ239 NE_40_ZZ240 NE_40_ZZ241

16625185192154225

$100,236.71$96,425.73$102,626.76$100,007.99$100,386.17$98,766.44

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Click a Team ID to access that team's portfolio.

Period 2

Bryant Anthony Nate

SMG Grades—on Grade Report Would you like additional points? See

my web site . . .

Period 4—Overall LNE Bus. Econ Winners!

Amanda Elise Talon

SMG Grades—on Grade Report Would you like additional points? See

my web site . . .

Money and BankingChapter 14

The Functions and Characteristics of Money

The basis is voluntary exchange Bills, coins, checks Historically – shells, gold, or sheep Native Americans used wampum –

beads wampum made from shells People in the Fiji Islands used

whales’ teeth

Define

Money: anything customarily used as a medium of exchange, a unit of accounting, and a store of value

Medium of exchange: use of money for exchange for goods or services

I have no money!

Barter: exchange of goods and services for other goods and services This tactic would be used if money didn’t

exist Requires a double coincidence of wants▪ Each party must want exactly what the other

has

Example: Plumber can fix baker’s sink (normally cost $100). Instead, baker gives $100 of baked goods.

Example: Photographer can agree to photograph dentist’s wedding pictures in return for dental work of equal value.

How do we measure money?

Unit of accounting: use of money as a yardstick for comparing the values of goods and services in relation to one another

Each nation uses a basic unit to measure the value of goods, just as it uses a foot or meter to measure distance

Units by nation

United States: Dollar Japan: Yen – 0.01 US

Dollar Europe: Euro – 1.36 US

Dollar Brazil: Real – 0.45 US

Dollar India: Rupee – 0.016 US

Dollar Russia: Ruble – 0.031 US

Dollar Australia: Dollar – 0.94 US

Dollar

Units

A single unit of accounting also allows people to keep accurate financial records Debts owed Income saved Salaries Many more

What’s the value

Store of value: use of money to store purchasing power for later use

People usually receive their money income once, twice, or four times a month, but spend it at all points during a pay period

Storing your income in the form of cash or in a checking account keeps the value for when you want to use it at a later time

Characteristics of Money

Anything that people are willing to accept in exchange for goods can serve as money

Historic examples include the following: Cattle Salt Animal hides Gems Tobacco(first page of notes should be completed)

Review. . .

Chapter 14 Vocab After completing the notes, you should

be able to complete at least four or five of these▪ DO NOT TURN IN—KEEP IN YOUR FOLDER

UNTIIL WE FINISH IT Guided Reading 14-1

Feel free to use your textbook If you finish it, turn it in. It is NOT due,

tho.▪ It’s due on TEST DAY

Wednesday, April 22, 2015

Bell Ringer: More trivia about

money and how long it lasts: “Guess” the number of years the

following notes remain in circulation before they are no longer able to use.▪ For Example: the $1 bill lasts 5.8 years▪ What about??▪ The $5? The $10? The $20? The $50?

The $100?

(turn in bell ringer form)

▪ TRADE WITH CUBA NEWSPAPER ARTICLE▪ Nebraska Unemployment Rate. . .

Characteristics of Money

Types of Money

Commodity Money: a medium of exchange such as cattle or gems that has value as a commodity or good aside from its value as money

Representative Money: Money that is backed by an item of value, such as gold or silver

Types of Money

Fiat Money: money that has value because a government fiat, or order, has established it as acceptable for payment of debts

▪ “Fiat”—latin word for “it shall be”—based on faith

Legal Tender: money that by law must be accepted for payment of public and private debts

What Gives a Dollar Bill its Value?

Digital Money: Bitcoin

What is Bitcoin? Watch this 3 minute video to get an

overview How many Bitcoins can you purchase

today with 1 US dollar? (Bitcoin exchange rate)

History of American Money and BankingSection 2

History Lesson

During the early colonial period of American history, England did not permit the new colonies to print money or mint coins Bartering became common

To help pay for the Revolutionary War, the Continental Congress issued bills of credit, called Continentals, that could be used to pay debts. So many of these were issued that they became

worthless and many places wouldn’t accept them

History Lesson--CONTINUED The Constitution, ratified in 1788, gave

Congress the power to mint coins.

In 1792, Congress passed the Coinage Act, which established the dollar as the basic unit of currency for the nation.

Our nation’s new leaders were torn between a national banking system and a state-chartered banking system. Today we have both

Banking Services

Why do we choose one bank over another? Different banks offer different services to entice customers.

Overdraft checking: checking account that allows a customer to write a check for more money than exists in his or her account

Banking Services

Electronic Funds Transfer (EFT): system of transferring funds from one bank account directly to another without any paper money changing hands

Automated Teller Machines (ATM): unit that allows consumers to do their banking without the help of a teller

Thief!

With EFT, comes the chance of identity theft. Since everything is stored in a computer, if someone knew how to get around the security, your information and money could be stolen!

The Electronic Funds Transfer Act of 1978 describes the rights and responsibilities of participants in EFT systems.

Thief!

EFT customers are responsible for $50 in losses when someone steals or illegally uses their ATM cards, if they report the cards missing within 2 days.

If they wait longer, they could be held responsible for up to $500!

Types of Money in the United StatesSection 3

Money and Near Moneys

Many people use the term “money” to refer only to “cash” but there are many different forms of money

Checking account: account in which deposited funds can be withdrawn at any time by writing a check

Friday, November 21, 2014

Bell Ringer (new form) Explain in 2-3 sentences what fiat

money is. Today: Chapter 14, Section 3 What are the types of money? The difference between M1 and M2? The difference between debit/credit

cards?

Formerly known as Demand Deposits

Checkable deposits: funds deposited in a bank that can be withdrawn at any time by presenting a check

Does your employer pay you using a debit card?

Not just banks

Thrift institutions: mutual savings banks, Savings and Loans, and credit unions that offer many of the same services as commercial banks

Which card to use?

Credit cards are technically not “money.” They defer payments rather than complete transactions that ultimately involve the use of money.

Debit card: device used to make cashless purchases; money is electronically withdrawn from the consumer’s checkable account and transferred directly to the store’s bank account Usually within 72 hours Debit cards vs. Credits Cards short video (8 min)

Close but no cigar

Near moneys: assets such as savings accounts that can be turned into money relatively easily and without the risk of loss of value

The Money Supply

M1: narrowest definition of the money supply; consists of moneys that can be spent immediately and against which checks can be written

M2: broader definition of the money supply; includes all of M1, plus such near moneys as savings deposits, small-denomination time deposits, money market deposit accounts, and retail money market mutual fund balances

Fed information on M1&M2

Bell Ringer: Without just rewriting the definitions, please state the difference of M1 and M2 in discussing money supply. Use at least 2 sentences.

Today: Money supply chart Chapter 14 Vocab/Guided Reading Debit cards vs. Credits Cards short video (8

min) Take Away Questions from video SMG time in lab????

Take a look!