1. “Money is the lifeblood of the economy”
Explain this quote.
How does money keep the economy moving? What happens to our economy when people have less money?

2. Money
Essential Question: How did modern monetary systems evolve from primitive barter economies?

3. Barter Economy – a moneyless economy that relies on trading goods & services for other goods & services * In order for the exchange to take place, there must be a “mutual coincidence of wants”

4. Money – anything that all (or most) of the people of a society are willing to accept as payment for goods and services
Island of Yap Stone Disks (known as Rai)
Colonial America Buckskins
Native Americans Wampum

5. In Ancient Rome, soldiers were paid in salt
Salarium → “Salary”

6. Commodity Money vs. Fiat Money
Federal Reserve Notes are backed by the "full faith and credit of the U.S. government"

7. Functions of Money Serve as a “Medium of Exchange”
Serve as a “Measure of Value”
Serve as a “Store of Value”

8. Characteristics of Money
Must be Portable
Must be Durable
Characteristics of Money
Must be Divisible
Must be Limited in Availability

9. Continental
Dollars

10. Bank Notes

11. United States Note (AKA “Greenback”)
Confederate States of America Note

12. National Bank Note

13. 1922 Gold Certificates

14. $10 “Indian Head” Gold Coin (1932)
$20 “Saint-Gaudens” Gold Coin (1914)

15. Silver Certificate
1899 Silver Dollar

16. http://www. nydailynews

17. Silver Certificates

18. 1978 Silver Dollar

19. Federal Reserve Notes

20. U.S. Bureau of Printing & Engraving
Video Clip
U.S. Mint
Video Clip

21. Money
Summarizer:
How does the currency (paper and coin) currently used in the United States of America fulfill the functions and characteristics of money?
Functions on Money:
Medium of Exchange
Measure of Value
Store of Value
Characteristics of Money:
Portable
Divisible
Durable
Limited in Availability