Money, Banking, the Fed & Taxes Chaps. 13, 14, and 15

Functions of Money Visual Money is What Money Does Medium of Exchange Measure of Value Store of Value

Functions of Money Money is What Money Does Medium of Exchange – easily, recognizable Measure of Value – How we measure value of everything in our society Store of value – has to hold value from time it is received to time it is spent

Early Money First, there was barter Next came commodity money like cattle, tobacco, salt or something representing them. Next came non-precious metals

History of Money Money based on precious metals like gold and silver were next Eventually, paper money evolved

History of Money Finally, credit cards and electronic forms of payment are developed

Video Clip on the History of Money

Interactive Link for new $5 bill