Class: Economics
Unit 5: Money, money,
Lesson 3: Characteristics and
Essential Question: Why did money replace the barter system?
Key Terms
Notes
Barter
_________________ is a voluntary exchange of items which
are not alike.
Examples:
Commodity
Fiat
Specie
Fiduciary
Commercial bank
Monetary unit
currency
liquidity
M1
M2
M3
Drawbacks of Barter:
● ______________ connection of producers & consumers
● Uncertain _____________ of barter goods
● ________________ of some barter goods
● ___________ of excess
Types of money
1. ____________ -money that had other uses…
example:
2. __________-money by the government; no other use
3. __________-money in the form of gold or silver coins
4. __________-money is representative (checks, cards)
Debit
vs.
Credit
|
5. __________-money debt generated by banks.
Characteristics of Money
1. _____________
2. _____________
3. _____________
4. ____________ _____________
Three functions of money
1. ___________ of exchange
2. Measure of ___________
3.