1. Basic concepts
What is a payment system? A system for transferring value between persons so as to complete exchange transactions.
Barter
Grain
Corn Owner
Grain Owner
Corn

2. What if Grain Owner doesn’t want Corn?
Basic concepts
What is a payment system? A system for transferring value between persons so as to complete exchange transactions.
What if Grain Owner doesn’t want Corn?
Grain
Corn Owner
Grain Owner
Money

3. What if they can’t meet to exchange money?
Basic concepts
What is a payment system? A system for transferring value between persons so as to complete exchange transactions.
What if they can’t meet to exchange money?
Grain
Corn Owner
Grain Owner
Money

4. Basic concepts

5. What is Money?

6. What is Money? A medium of exchanging value
A store of value to be used later

7. What is Money? A medium of exchanging value
§1-201(24) adds “authorized or approved by a government.”
A store of value to be used later

8. What is Money? Aristotle’s Ethics
Shoe maker and house builder want to exchange.
They want an equal exchange.
How many shoes equal a house?
Money serves as a measure.

9. What is Money?

10. What is Money?
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11. What is a Dollar?
Legal Tender: It must be accepted as discharge of all public and private debts
$1 represents the right to . . .

12. What is a Dollar?
Legal Tender: It must be accepted as discharge of all public and private debts
$1 represents the right to Another $1