1. To explain the nature of money as a medium of exchange.

2.  Modern money 800BC (face value)  Surplus goods or services = money  Flexibility

3.  Everyone accepted their value.  No argument about how much the coins were worth.  Portable.  Divisible.  Durable.  Comparable  Scarce (had a limit).

4.  No need for gold or silver money.  Paper notes.  Government production. (ensures scarcity)  Difficult to copy.

5.  If people don’t accept money it is worthless.  Germany 1920s – government having difficulty paying war debt. Printed money!!  Sellers put prices up, workers demanded higher wages, government printed even more money.  Prices rose 833 333 000 times in a year. $1 now would be $800 000 000 in a year.

6.  ‘This note is legal tender for...’

7.  Few wage payments by cash.  Automatic payments  EFTPOS  Telephone banking  Future???

8.  Define – medium of exchange, portable, counterfeit, durable, barter, legal tender, PIN, EFTPOS, e-commerce.  Explain why we use a medium of exchange rather than barter.  What will happen to the Euro? Does it affect us?  Why aren’t silver coins actually silver?  Design a brochure ‘Buying on the Internet – a beginners’ guide’. (how to purchase goods on the internet).

9.  List 3 ways that technology developments have changed the way people pay for goods and services.  Explain the purpose of having a PIN.  If you won $10 what would you invest it in and why?