Agenda Test #2 Introduction to Module 3, Money and Banking Homework –Review Powerpoint for next class (online) –Read “Current Reading Assignment” (online)

Test #2 –Five Minute Review –Remain Quiet OR DETENTION AWAITS YOU –TEST

Cheating According to the La Salle Student Handbook & Planner, an option available to a teacher that discovers a student cheating is to fail the student for the class. This is the option that I will choose if you cheat on the test.

THREE MINUTE BREAK stopwatch.com/bomb-countdown/

Introduction to Module #3 Money and Banking

Before there was money, barter was the system. Bartering is trading goods and services. Example…I’ll teach you if you if wash my car. No money exchanged, just an exchange of services

Not efficient So Money evolved.

Three Uses of Money 1. Medium of Exchange Buy Stuff 2.Store of Value Retains Value (what is the value of money anyway?) 3.Unit of Account Measures stuff (what is the value of your backpack?)

Six Characteristics of Money 1.Portable – You can take it with you 2.Uniform – Your dollar bill is the same as mine 3.Durable – Lasts a long time (survives the washing machine) 4.Divisible – You can make change 5.Limited – Can’t be counterfeited 6.Accepted – Stores accept your paper Why these characteristics?

Because these six characteristics achieve the three uses of money. CharacteristicsUses 1. Portable 1. Medium of Exchange 2. Uniform 2. Store of Value 3. Durable 3. Unit of Account 4. Divisible 5. Limited 6. Accepted

Four Types of Money 1.Commodity Money (ex. shells, gold, salt, sheep) 2.Representative Money (paper money representing a commodity) 3. Fiat Money (paper money not representing a commodity) 4.Electronic Money (paperless money)

Four Types of Money 1.Commodity Money (ex. shells, gold, salt, sheep) 2.Representative Money (paper money representing the commodity) 3. Fiat Money (paper money not representing a commodity) 4.Electronic Money (paperless money) Why the evolution …. from commodity to representative to fiat to electronic?

Because each successive type has more of the six characteristics to achieve the three uses. TypesCharacteristicsUses 1. Commodity1. Portable 1. Medium of Exchange 2. Representative2. Uniform 2. Store of Value 3. Fiat3. Durable 3. Unit of Account 4. Electronic4. Divisible 5. Limited 6. Accepted

HOMEWORK Review Powerpoint for next class (online) Read “Current Reading Assignment” (online)