1. The Evolution of Money (cont.)
In a barter economy, exchange of goods and services must have a “mutual coincidence of wants.”
Money in primitive societies
Commodity money
Fiat money
Section 1

2. Characteristics and Function of Money (cont.)
Characteristics of money
Portable
Durable
Divisible into smaller units
In limited supply
Section 1

3. Characteristics and Function of Money (cont.)
Functions of money in the economy
Medium of exchange
Measure of value
Store of value
Section 1

4. Characteristics and Function of Money (cont.)
The Fed has different definitions for the money supply. M1 M2
Section 1

5. Money People began using money because it made buying and selling easier than bartering.
VS 1