1. Money
By: Ben Quick

2. The Role of Money
Medium of Exchange – a seller will accept it in exchange for a good or service
- Prior to the development of money people had to barter ( Exchange goods and services for other goods and services)

3. The Role of Money
Unit of Accounting – measures and compares the value of goods and services to one another
- We know that a gallon of gas is worth more than a piece of gum because the gasoline’s dollar value is greater than the gum’s dollar value

4. The Role of Money
Store of Value – individuals can accumulate and save money in order to make large purchases or for later use

5. Characteristics of Money
Durable – will last
Portable – easily transported
Divisible – Can be broken down into smaller units
Stable in Value – Must not rapidly change in value
Scarce – limited supply
Accepted – must be taken as payment for debt or purchases

6. Types of Money
Representative Money – Money that is backed by or exchangeable for some commodity (like gold or silver)

7. Types of Money
Fiat Money – money that has a face value ordered by the government and deemed Legal Tender (by law must be accepted as payments)

8. Types of Money
Commodities Money – mediums of exchange that have a value as a commodity, aside from their value as money.
- Example: cattle, gems, etc..

9. Questions?