Warm Up #23
Answer the questions to the following video.
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Class Confession
We the Senior Class of 2016 will complete ALL of
our assignments to best of our abilities and
behave appropriately in class.
We will respect all faculty, staff, substitutes,
classmates, and especially Mr. Wilcox.
We will graduate on time May 20, 2016 and
become productive citizens in society.
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SSEMI1b.
Explain the role of money as a medium
of exchange and how it facilitates
exchange.
Determine and define vocabulary. Identify key terms within the
standard. Define each term.
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Scaffold understanding of the standard(s) and/or element(s).
Paraphrase the standard(s) and/or element(s). Rewrite the standard
including synonyms or brief definitions in parentheses and in a
different color following the key terms found in step 1.
Explain (clarify) the role (part) of money (funds)
as a medium (middle) of exchange (interaction)
and how it facilitates (helps) exchange.
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Money: Its Functions and
Properties
SSEMI1b
Explain the role of money as a
medium of exchange and how it
facilitates exchange.
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What is Money?
Money is anything that
people commonly
accepted in exchange for
goods and services.
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What functions does money serve?
Medium of exchange
A standard of value
Store of value
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Medium of Exchange
Any item that sellers accept as payment for
goods and services.
Barter—exchanging goods or services for
other goods or services
–inefficient: both people must want what
the other one has to exchange
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Standard of Value
Provides people with a way to measure
the relative value of goods and services
by comparing their prices.
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Store of Value
It can be saved, or stored for later use.
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5 Characteristics of Money
Acceptability
Divisibility
Durability
Portability
Stability in Value
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Acceptability
People are willing to accept money in
exchange for their goods and services.
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Divisibility
Ability of money to be divided into smaller
units.
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Durability
Ability to be used over and over again,
and can withstand wear and tear.
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Portability
Ability to be
carried from one
place to another
and transferred
from one person to
another.
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Stability in value
Must be stable in value
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3 Types of Money
A. Commodity Money
• An item that has a value of its own
–Ie. Gold and silver (specie), diamonds, etc.
B. Representative Money
• An item that has value because it can be
exchanged for something else of value
–Ie. Bills that were redeemable for gold or silver.
C. Fiat Money
• A government decree says that it has value.
–Ie. Coins and paper money in the U.S.
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What forms of money does the U.S. take?
A. Coins and Paper Money
B. Demand Deposits
1. Checking accounts (“on demand” at any time)
C. Near Money
1. Savings accounts
2. Time deposits
a. CD’s & Bonds
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Closure Activity #22
Suppose that you and your classmates
decide to establish a monetary system for
you school’s money. What will you use as
currency?
Explain why you chose that item, why it
functions as money, and how it matches
the characteristics of money.
10 mins.
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Show What You Know!
Georgia Milestone Practice Question
When people put money in a savings account, money is
serving as a
A. Store of value
B. Medium of exchange
C. Standard of value
D. All of the above
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Show What You Know!
Georgia Milestone Practice Question
If the smallest unit of U.S. money was the $100 bill, which
characteristic of money would it not meet?
A. Durability
B. Portability
C. Divisibility
D. Acceptability
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Show What You Know!
Georgia Milestone Practice Question
What is the system of exchange that does NOT involve
money?
A. Haggling
B. Barter
C. Free exchange system
D. Debit exchange system
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The End
Any Questions?
Any Concerns?
Any Comments?
Any Questions?
Any Concerns?
Any Comments?
Any Questions?
Any Concerns?
Any Comments?
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Chapter 10 Money Quiz Tomorrow!
Money
Medium of exchange
Barter
Standard of value
Store of value
Durability
Portability
Acceptability
Commodity Money
Representative Money
Fiat Money
Currency
Demand deposits
Near money
Divisibility
Stability in value
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