Unit 2 Lesson 5 Money

Game Plan Find out why we use money. Complete an assignment about money in groups. Mr. Cook says a few things about money. Group Activity-The Functions of Money Money quiz--open notes, closed mouth Re-Cap

Group Assignment Why is money useful? Your group must try to think of two different reasons why money is useful. 2 reasons!!!! You don’t have to write anything down, but have 2 reasons to share with the class. You have a couple of minutes. Go!

3 Functions of Money Medium of exchange: buy stuff Unit of measure: measure worth Store of value: hold value

Types Barter: trade Commodity money (gold, spices, etc.) Fiat money: gov’t says it’s valuable we believe that

Listen Funny Money Chocolate: Cacao seeds were used in 1500s by Aztecs. Salt: The word "salary" comes from the word "salt." Cattle: Have been used as currency since 9,000 BC.

Money in Colonial America - Listen Corn, gunpowder, tobacco, wampum States let individuals print their own $ backed by gold. During American Revolution, 250 million “Continental dollars” were issued.

Group Assignment Imagine you’re talking to someone who has never seen or used money. Describe money to this person. Have someone in the group write this down.

Characteristics Portable Durable Divisible Limited Supply (to hold value) Some islanders in Micronesia used these carved stones called “Vai” as currency .

Money Worksheet

Money Quiz

1. On the island of Yap, large circular stones are used for money 1. On the island of Yap, large circular stones are used for money. The main reason why this type of money serves its function as a medium of exchange is because it is A) Medium of Exchange B) Unit of Measure C) Store of Value D) Limited Availability

2. You are saving your money so that you will be able to afford a car this summer. What function of money are you using? A) Medium of Exchange B) Unit of Measure C) Store of Value D) Limited Availability

3. I estimate that Frank’s car is worth $11,000 3. I estimate that Frank’s car is worth $11,000. What function of money am I using? A) Medium of Exchange B) Unit of Measure C) Store of Value D) Limited Availability

4. You buy a Dr. Pepper at the Chevron 4. You buy a Dr. Pepper at the Chevron. What function of money are you using? A) Medium of Exchange B) Unit of Measure C) Store of Value D) Limited Availability

5. The use of money in an economy solves which of the following problems? A scarcity B the condition of opportunity cost C an efficient means of economic exchange D trade barriers

So, Why Do We Use Money? 3 Functions Problems With Barter