1. Chapter 19 Managing Money 19.1 Money and Credit

2. Money  Money is something sellers take in exchange for whatever they have to sell  includes checks, bank accounts, and currency  Money is a medium of exchange  Currency is the coins and paper bills

4. Currency  1. Must be easy to carry and take up little space  2. System of units easy to figure out  3. Must be durable. (last a long time)  4. Must be in a standard form and guaranteed by a nation’s gov’t

5. Coins and Paper Money  In 1792, a mint was opened in Philadelphia  Another was later opened in Denver  6 coins are used:  Pennies, nickels, dimes, quarters and half dollars, dollar  6 bills are used:  $1, $5, $10, $20, $50, $100

6. Checks  Checks are a written and signed order to a bank to pay a sum of money from a checking account  Checks are not legal tender because they are not guaranteed by the federal gov’t  Most money is kept in bank accounts and people pay using checks

8. Charge Accounts  Charge Accounts are accounts people use for a specific store  People can buy things from that store and receive a monthly bill  Examples?

9. Credit Cards  Credit Cards are a substitute for money issued by banks and lending institutions  The store charges the credit card company and the company sends the person a bill  Interest has a large role

11. Credit  Business use credit to buy goods and pay later once they sell the goods  People use credit with credit cards, or for long term installments such as autos or homes