Objective: What is money? What are the three uses of money ...

Money

Objective:

•  What is money?

•  What are the three u

•  What are the six cha
money?

•  What are the source

*Be sure to leave a couple blank
answer the questions at the end o

Chapter 10 Section M

uses of money?
aracteristics of

es of money’s value?

lines under each question and
of the lesson.
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CA Standard(s) Cover

12.6 Students analyze issue
and explain how the U.
is affected by, econom
United States’ borders

4. Explain foreign exchange, th
exchange rates are determi
dollar’s gaining (or losing) v
currencies.

Chapter 10 Section M

red

es of international trade
.S. economy affects, and
mic forces beyond the
s.
he manner in which
ined, and the effects of the
value relative to other

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Chapter 10 Video

Chapter 10 Section M

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What Is Money?

Money is anything that s
exchange, a unit of accou

Chapter 10 Section M

serves as a medium of
unt, and a store of value.

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The Three Uses of Mo

•  Money as Medium of Exchan
–  A medium of exchange is
determine value during the
services.

•  Money as a Unit of Account
–  A unit of account is a mea
goods and services.

•  Money as a Store of Value

–  A store of value is someth
stored rather than used.

Chapter 10 Section M

oney

nge
anything that is used to
e exchange of goods and

ans for comparing the values of

hing that keeps its value if it is

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The Six Characteristic

The coins and paper bills used a
currency. A currency must mee

•  Durability
Objects used as money must
withstand physical wear and
tear.

•  Portability
People need to be able to take
money with them as they go
about their business.

•  Divisibility
To be useful, money must be
easily divided into smaller
denominations, or units of
value.

Chapter 10 Section M

cs of Money

as money in a society are called
et the following characteristics:

•  Uniformity
Any two units of money must be
uniform, that is, the same, in
terms of what they will buy.

•  Limited Supply
Money must be available only in
limited quantities.

•  Acceptability
Everyone must be able to
exchange money for goods and
services.

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The Sources of Money

Commodity Money Represen
Money
•  Commodity
money consists •  Repres
of objects that money
have value in value b
themselves. the hol
exchan
someth
of valu

* This chart can be fo

Chapter 10 Section M

y’s Value

ntative Fiat Money
y
•  Fiat money,
sentative also called
y has “legal tender,”
because has value
lder can because the
nge it for government
hing else decreed that is
ue. an acceptable
means to pay
debts.

ound on page 247 text

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Current Event Video

Chapter 10 Section M

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Current Event Video

Chapter 10 Section M

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Current Event Video

Chapter 10 Section M

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Section 1 Assessmen

1. Two units of the same type of mone
they will buy, that is, they must be
(a) divisible.
(b) portable.
(c) acceptable.
(d) uniform.

2. What is the source of fiat money’s v
(a) it represents the value of anoth
(b) government decree
(c) presidential pardon
(d) it is equal to the value of the st

What’s a dollar w
Click Here!

Chapter 10 Section M

nt

ey must be the same in terms of what

value?
her item

tock market
worth?

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Section 1 Assessmen

1. Two units of the same type of money
they will buy, that is, they must be
(a) divisible.
(b) portable.
(c) acceptable.
(d) uniform.

2. What is the source of fiat money’s va
(a) it represents the value of anothe
(b) government decree
(c) presidential pardon
(d) it is equal to the value of the sto

What’s a dollar w
Click Here!

Chapter 10 Section M

nt

y must be the same in terms of what

alue?
er item
ock market
worth?

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HW

•  Read pages
complete ques

Chapter 10 Section M

s 243-248 and
stions 1-5 p. 248.

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The History of Ame

Objective:

•  CHhoawpdteidr 1A0m,eSrieccatniobna1n

•1 W7h0a0tsisamndon1e8y0?0s?
•  •HW  ohwat waraesththeethbreaenuksinegs

•t Whehaltaatere1t8h0e0ssix?characte

•  What developments o
during the twentieth c

*Be sure to leave a couple blank
answer the questions at the end o

Chapter 10 Section M

erican Banking

1nkRinegvicehwa:nge in the

osfymstoenmey?stabilized in

eristics of money?

occurred in banking
century?

lines under each question and
of the lesson.
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CA Standard(s) Cover

12.2 Students analyze
America’s market ec
setting.

9. Describe the functions

Chapter 10 Section M

red

the elements of
conomy in a global

of the financial markets.

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American Banking Be

Two Views o

•  Federalists believed in a •
strong central government.

•  Alexander Hamilton was in

favor of a national bank

which could issue a single

currency. •

Chapter 10 Section M

efore the Civil War

of Banking
•  Antifederalists were

against a strong central
government and favored
leaving powers in the
hands of the states.

•  Thomas Jefferson
opposed the creation of a
national bank, and instead
favored banks created and
monitored by individual
states.

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Shifts in the Banking S

•  The First Bank of the United
–  Created in 1791.

•  Chaos in American Banking
–  The First Bank expired in
chartered banks began is

•  The Second Bank of the Unit
–  Created in 1816.

•  The Free Banking Era (betwe
–  Another period dominated
took hold.

Chapter 10 Section M

System

d States

g
n 1811. Different, state-
ssuing different currencies.

ted States

een 1837 and 1863)
d by state-chartered banks

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Banking Stabilization

The National Banking Acts of 18
federal government the power to

1. Charter banks
2. Require banks to hold ade

silver and gold
3. Issue a single national cur

In 1900, the nation shifted to the
monetary system in which paper
are equal to the value of a certai
The gold standard had two adva

1. It set a definite value on th
2. The government could onl

had gold in its treasury to b

Chapter 10 Section M

in the Late 1800s

863 and 1864 gave the
o:

equate reserves of

rrency
e gold standard, a
r money and coins
in amount of gold.
antages:
he dollar.
ly issue currency if it
back its notes.

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Banking Today

•  The Federal Reserve Act of 1913
created the Federal Reserve
System. The Federal Reserve
System served as the nation’s
first true central bank.

Chapter 10 Section M

•  The Banking Act of 1933
created the Federal Deposit
Insurance Corporation (FDIC).
Today, the FDIC insures
customers’ deposits up to
$250,000.

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Current Event Video

Chapter 10 Section M

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60 Minutes Report: FD

•C  lick HERE

Chapter 10 Section M

DIC

for Video

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Section 2 Assessmen

1. During the Free Banking Era between
States was dominated by which of th

(a) small, independent banks with n
(b) The Bank of the United States
(c) state-chartered banks
(d) savings and loans banks

2. After the Civil War, the National Bank
the power to do all of the following E

(a) insure banks against failure
(b) charter banks
(c) require banks to hold adequate

(d) issue a single national currency

Let’s take a FED quiz!
Click Here!

Chapter 10 Section M

nt

n 1837 and 1863, banking in the United
he following?
no charters

king Acts gave the federal government
EXCEPT:

gold and silver reserves
y

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Section 2 Assessmen

1. During the Free Banking Era betwee
States was dominated by which of t

(a) small, independent banks with
(b) The Bank of the United States
(c) state-chartered banks
(d) savings and loans banks

2. After the Civil War, the National Bank
the power to do all of the following

(a) insure banks against failure
(b) charter banks
(c) require banks to hold adequate

(d) issue a single national currency

Let’s take a FED quiz!
Click Here!

Chapter 10 Section M

nt

en 1837 and 1863, banking in the United
the following?
no charters

king Acts gave the federal government
EXCEPT:

e gold and silver reserves
y

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HW

•  Read pages 250-2
questions

Chapter 10 Section M

257 and complete
s 1-3 p. 256.

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Banking Today

Chapter 10, Section 2
O•bH  joewctdiivdeA:merican bankin

•  aWndh1a8t0’s0st?he definition
•1sH 8uo0wp0spw?lays?the
banking sys

• •WW  hhaattdseveerlvoipcmeesndtsoocbcau

• thHeotwwednotiebthacneknsturmy?ake

*Be sure to leave a couple blank lin
answer the questions at the end of

Chapter 10 Section M

2 Review:

ng change in the 1700s

n of the U.S. money

stem stabilized in the late

aunrrkesd ipnrboavnikdineg?during
e a profit?

nes under each question and
f the lesson.
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