Presentation is loading. Please wait.

Presentation is loading. Please wait.

MoneyMoney & Banking-Chapter 14 Money- anything used as a medium of exchange, a unit of accounting, and a store of value. The 3 Functions of Money 1.Medium.

Similar presentations


Presentation on theme: "MoneyMoney & Banking-Chapter 14 Money- anything used as a medium of exchange, a unit of accounting, and a store of value. The 3 Functions of Money 1.Medium."— Presentation transcript:

1 MoneyMoney & Banking-Chapter 14 Money- anything used as a medium of exchange, a unit of accounting, and a store of value. The 3 Functions of Money 1.Medium of Exchange- use of money in exchange for goods or services. Without money people would have to Barter-exchange goods and services for other goods and services.

2 2. Standard of Value- yardstick for comparing the values of goods and services. 3. Store of Value- use of money to store purchasing power for later use.

3 3 Click the mouse button or press the Space Bar to display the information. Characteristics of Money Durability- must withstand wear and tear. Portability- must be able to take it with you. Divisibility- can be divided into smaller denominations. Stable in Value- uniform in terms of what it will buy. Scarce- must be available only in limited quantities. Accepted- able to exchange for goods and services.

4 A World of Money-Izzit.org DVD-Running Time:15:30

5 5 Types of Money Click the mouse button or press the Space Bar to display the information. Commodity Money a medium of exchange such as cattle or gems that has value as a good aside from its value as money. Representative Money money that is backed by an item of value, such as gold or silver.

6 6 Legal Tender money that by law must be accepted for payment of public and private debts. Fiat Money money that has value because a government has established it as acceptable for payment of debts. All money in the United States is Fiat Money.

7 How Does the Banking System Work? Types of Banks Commercial Banks Savings & Loan Banks Mutual Saving Bans Credit Unions Services offered Cash Checks, Issue credit cards, Change foreign currency, Safe deposit boxes, ATMs, Debit Cards, Direct deposit of paychecks, Automatic payment of bills, loans etc.

8 What Counts as Money Today? M1- Cash and Assets, Checkable Deposits and Traveler’s Checks. M2-Savings Accounts and money saved in various accounts or funds plus M1. Near-Money-money deposited in saving accounts. Debit Card- allows you to access money in your bank account. Credit Card-allows you to buy something now with borrowed money and pay for it later. FDIC-Federal Deposit Insurance Corp.- Government insurances deposits in bank for $250,000.

9 Where’s George?

10 How Money is Made-Part 1 How Money is Made-Part 2 How Money is Made-Part 3 How Money is Made-Part 4 How Money is Made-Part 5 How Money is Made

11 Overdraft Protection-allows customer to write a check (use debit card) for more money then in bank account. Electronic Funds Transfer (EFT)- banking functions are in computers. Automated Teller Machines (ATMs)-can do banking without a teller Interest- a payment for the use of borrowed money. Interest is paid on a loan.

12 Brief History of U.S. Banking A New Nation-”Continentals” The First Bank of the U.S.-1791-1811 The Second Bank of the U.S.-1816-1836 "Free" Banks-1837-1863 National Banks-1863-1913 The Federal Reserve: 1913-present


Download ppt "MoneyMoney & Banking-Chapter 14 Money- anything used as a medium of exchange, a unit of accounting, and a store of value. The 3 Functions of Money 1.Medium."

Similar presentations


Ads by Google