1. The Functions and Characteristics of Money
Chapter 14 Section 1
The Functions and Characteristics of Money

2. Clip of the Day
Largest Dead Snake Ever Found – Over 50 Feet Long

4. Money
Anything used as a medium of exchange, a unit of accounting, and a store of value.

5. Functions of Money #1 - MEDIUM OF EXCHANGE
Sellers willing to accept it in exchange for a good or service.
Barter – Exchange of goods or services for a different good or service.

6. Cont. #2 - UNIT OF ACCOUNTING
Use of money allows us to compare the value of goods and services to other businesses and countries.
Allows us to compare products (find bargains)

7. Cont.
#3 - STORE OF VALUE
Use of money to store purchasing power for later use.
Can SAVE $ (problems with inflation can occur)

14. Characteristics of Money

15. Types of Money
Commodity Money – Goods that have value (Ex. Cattle, Gems, Metals) aside from money.
Representative Money – Backed by an item of value – IE Silver or Gold. US Before
Fiat Money – Government Order. Legal Tender. United States uses this.