Chapter 13 Money

A. Bartering vs. Money 1. Bartering = a trade of goods / services for other goods / services 2. Problem 1 - people need to want what you’ve got! 3. Problem 2 - saving and bartering later may be hard 4. Money solved the issue of bartering 5. Money is widely accepted currency 6. Money is used to compare the value of goods and services 7. Money is a way to store value - ie: spend now or save it up!

Money …….

B. Specialization and Money 1. Money helps people specialize (what if there were no money??) 2. People would have to create things rather than buy them!

GET INTO JAIL QUICKLY.. It’s a felony to copy the moneysupply!

C. Desirable Qualities of Money 1. Money should be widely accepted and recognized 2. Money should be scarce - it must be limited or it loses value (It should not be easy to counterfeit) 3. Money should be easily divided (ie: different denominations) 4. Money should be durable (as in usable through most conditions) 5. Money should be portable - light and compact

MONEY AND HAPPINESS…

D. Today’s Money Supply 1. Produced under the Department of the Treasury a. Coins are produced at the Bureau of the Mint b. Paper is produced at the Bureau of Engraving and Printing c. Demand Deposit Accounts – money placed into accounts for account holder to have cash upon request 2. Money affects prices, loans, jobs and many other parts of life 3. The $2 bill was created in 1976 and was thought to be quite useful - over time it has been used less and less