Learning Target: I can build a list of concepts in chapter 8. Ch. 12 Tests Ch. 8 Notes Unit 2 Retakes (by end of tomorrow) Agenda… Textbook! By the bell…

3 Functions of Money Medium of Exchange Standard of Value Legal tender Standard of Value Useful for comparison Store of Value Purchasing Power, Inflation

Six Characteristics of Money Acceptability Scarcity Portability Durability Divisibility Uniformity

Six Characteristics of Money Acceptability – people must be willing to trade for it. Salt: Used as Roman Military Salary Scarcity – Cannot be too common or too rare. Salt: Rare in some parts of the world, but has high demand…it’s very useful.

Six Characteristics of Money Portability – Easy to carry Salt: Not great in large amounts. Durability – Can withstand being traded over and over Salt: Long lasting, if kept dry

Six Characteristics of Money Divisibility – Divide into smaller amounts Salt: divisible down to the granules Uniformity – Same characteristics for currency of same value Salt: Pretty much the same in characteristics, and usefulness, from anywhere

M1 vs. M2

Credit Vs. Debit

Banking Services