Money and banking

Money and Money and BankingBankingEconomics Section 2Economics Section 2

3 Uses of Money3 Uses of Money

Money=anything that Money=anything that serves as a medium serves as a medium of exchangeof exchange

Medium of Medium of Exchange=anything Exchange=anything that is used to that is used to determine value determine value during the exchange during the exchange of goods and of goods and servicesservices

What is Barter?!What is Barter?!

Barter=the direct Barter=the direct exchange of one set exchange of one set of goods or services of goods or services for anotherfor another

Traditional Traditional Economies!Economies!

Do we use Barter in Do we use Barter in the U.S.?!the U.S.?!

Money as a Unit of Money as a Unit of AccountAccount

Money provides a Money provides a means for comparing means for comparing the values of goods the values of goods and services.and services.

You can compare the You can compare the cost with other storescost with other stores

Price is always Price is always expressed the expressed the same….in $’s!same….in $’s!

Money as a Store of Money as a Store of ValueValue

Money keeps its Money keeps its value if you decide to value if you decide to hold on to/store it.hold on to/store it.

Our $ will keep its Our $ will keep its value and be value and be recognized as a recognized as a medium of exchangemedium of exchange

Inflation can have an Inflation can have an effect however!effect however!

ReviewReview

3 Uses of Money:3 Uses of Money: Medium of ExchangeMedium of Exchange Unit of AccountUnit of Account Store of ValueStore of Value

The Six Characteristics of The Six Characteristics of Money!Money!

DurabilityDurability PortabilityPortability DivisibilityDivisibility UniformityUniformity Limited SupplyLimited Supply AcceptabilityAcceptability

AssignmentAssignment

Vocabulary BuilderVocabulary Builder Using the key terms of Chapter 10 Sec. 1, Using the key terms of Chapter 10 Sec. 1,

read and record the definitions.read and record the definitions. Using newspapers/magazines/internet, etc, Using newspapers/magazines/internet, etc,

find an image depicting the meaning of each find an image depicting the meaning of each term.term.

Post the terms and images in your notes!Post the terms and images in your notes!