1. Money makes the world go around
Money is something that is generally acceptable as a medium of exchange
cash circulating in the economy + deposits with financial institutions make up the money supply

2. Functions of Money Medium of exchange Measure of value Store of value
Means of deferred payment

3. Characteristics of money
Acceptable
Durable
Portable
Divisible
Scarce

4. Why is money important for the economy to operate?
Research the history of money and the barter system
What is barter?
What were the early forms of money?
When were coins first used?
When was paper money first used?
What are the advantages and disadvantages of paper money?
Why were polymer notes developed?

5. Define the following terms
Cash
Financial assets
Liquid assets
Liquidity
Money supply
Physical assets
Velocity of circulation
Bank deposits
Why couldn’t banks repay bank deposits if everyone withdrew their money on the same day?