1. Money Flow

2. Learning Objectives
To recognise the important role money plays in our economic well being
To appreciate that prices change over time and because of circumstances
To have an understanding of the processes of supply and demand

3. Money
Money plays an important part in our daily lives, we use it without giving it much thought…
Why do we have money?
What purpose does it serve?
What would life be like without money?
Where does money come from?

4. Money
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5. Value of money
Why is trust important in the exchange of money for goods?
Why wouldn’t you allow someone to pay you in an unrecognised currency?
Why is it important to prevent money from being counterfeited?

6. Money
Money has a value because we all trust that it has a value, we all accept that a £20 is worth £20
If we no longer trust the value of our currency then traders won’t accept it and our economy will collapse
The value of money would become worthless and we would return to bartering

7. A cereal challenge
Rice, beans and corn is a ‘buying’ game that you are all going to play…
Six people will be ‘sellers’ and the rest of the class will be ‘buyers’.
The sellers will be selling bags of either rice, beans or corn.
The aim of the game is to purchase one each of the bags.
The winners will be the buyer who has managed to buy one of each and has the most money left over and the seller who has made the most money.

8. Ready, steady, go!
You have 20 minutes to trade – the game will then end and the winners will be identified.
Threatening behaviour or intimidation of sellers or other buyers will result in instant confiscation of all goods and/or money tokens
Good luck!

9. So what happened?
What was the top price paid for a token? And the lowest?
Why did some goods cost more than others?
What would have happened to the price of corn if there had been more of it?
What would have happened to the price of rice if there was less?
Would it have been easier to simply trade (barter) the goods?
What would have happened if nobody tried to buy anything?

10. Prices and the value of money
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11. Money Flow
You have to explain what money is and how it works to an alien…
You can either write this in 100 words OR
In 20 seconds if speaking!