Simplifying Global Economics, Business, and Finance edunomics.club

Game Plan Review what we learned last class Talk about Money History of US coinage

Last Class GDP Unemployment

Review- GDP How much a country is worth? Y = C + I + G + (X - M)

Review- Unemployment People in workforce without a job

Money Money – payment for goods or services Money supply – total amount of money available in the economy Wealth – total collection of pieces of property that serve to store value

Roles of Money Medium of exchange – item used to trade for goods and services Alternative to bartering Must be easily standardized Must be widely accepted Must be divisible Must be easy to carry Must not deteriorate quickly

Roles of Money Store of value – holds purchasing power Unit of account – measure to set prices and make economic calculations

Forms of money Commodity money – gold, silver, other precious metals, certain stones, etc. Representative money – backed 100% by precious metals Fiat money – useless pieces of paper Checks Electronic money – credit card, etc.

Time Value of Money Value of American dollar is decreasing

History of US Coinage %20Money%20Museum/Educators/Online%20Activities/Di scover%20Historical%20US%20Currency.aspx %20Money%20Museum/Educators/Online%20Activities/Di scover%20Historical%20US%20Currency.aspx

Next Class Review what we learned today Talk about Money Markets

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