Miss Smith 7 th Grade Civics *pgs

 Currency- Coins and paper money  3 common features:  Easy to carry  Durable  Have a standard form and considered legal by the gov. that issues it

 Two mints (plants where coins are made) in the U.S.  In Philadelphia, PA and Denver, CO  Paper money is printed in Washington, D.C.

 People are NOT required to accept checks as legal tender because they are not issued by the federal gov.  Intentionally writing checks for amounts of money you do not have in your bank account is a crime

 Like electronic checks

 Using credit means you can buy something now with the promise to pay for it later  Interest is a payment charged for borrowed money

 Charge cards are issued by stores  Can only be used in the store that issues them  The store lends the money to be paid back  Banks issue credit cards  Can be used almost anywhere  The credit card company lends the money to be paid back

 Long-term Credit- loans payable over long periods  Used to make big purchases like cars, major appliances, homes  Short-term credit- loans that are repaid over a short period of time  Stores can repossess, or take back, purchases that have not been fully paid for

 Bankruptcy- legal declaration that a person or business cannot pay debts owed  A bankruptcy judge must excuse the person from debt or allow them to pay a reduced amount  This can hurt your credit rating/score for years  Creditors- people who are owed money

*Do not write  How can a merchant arrange to buy goods if he or she does not have enough money to pay for them?  Why is credit important to the U.S. economy as a whole?