1. Warm-Up
What would the world be like if no one used money at all? What would we have to do instead?

2. In the beginning…
Barter (Trade) System

3. Over time…
Switched to commodity money—something that has value in itself
E.g. gold coins

4. The ultimate money…
Fiat money—has no real value itself, but has value because the government has declared that it is acceptable for paying debts.
E.g. U.S. dollar

5. Why money is important
Money acts as a medium of exchange, making trade easier.

6. Why money is important Money acts as a store of value
Money holds value—it doesn’t go bad

7. Why money is important Money acts as a measure of value
Allows you to compare values of goods and services (the more it costs, the more value)

8. Three Characteristics of all Money
1. Durability—can’t be destroyed easily

9. Three Characteristics of all Money
2. Portability—can transport easily

10. Three Characteristics of all Money
3. Divisibility—can divide into parts

11. Why is barter (trade) not as good as just using money?
When you trade, both people have to want what the other has
When you just use money, you can use the money for many things, so you’re more likely to trade

12. So who prints/mints the U.S. money?
Department of the Treasury
Bureau of Engraving and the U.S. Mint

13. So who collects your taxes?
Internal Revenue Service (IRS)