Name__________________ Date due__________date turned in___________
Posted on internet Monday 04_16
Econ: Chapter:10 Section: 1 Date Due: 04_17 Page(s)240
Thru 269 Graphs Fig.10.1;10.2;10.3;10.4;10.5;10.6.; 10.7 10.8.
Global Connection: pg.246 Skills for Life:page:249 Fast Fact pg.248 and 264 Entrepreneur pg.257; Case study: Big Banks and
Small pg.265: Databank pg.537
Chapter 10: Section 1: Money
Objectives: After studying this section you will be able to:
A. Describe the three uses of money.
B. Explain the six characteristics of money.
C. Understand the sources of money’s value.
Main Idea: Money serves as a medium of exchange, a unit of account, and a store of value. Although many objects have served as money the past, the coins and bills we use today meet the needs of modern society.
1. Economists define money in terms of its three_________.
2. Anything that serves as a medium of exchange, a unit of account, and a store of value is to an economists______.
3. Anything that is used to determine value, during the exchange of goods and services is considered___ _________ _________
4. The direct exchange of one set of goods or services for another is called_____________
5. Barter is no longer used in many parts of the world. TF. What kind of economies typically use Barter as a medium of exchange?_________
6. As an economy becomes more__________ bartering becomes too difficult and time-consuming to be practical. TF
7. When money provides a means for comparing the values of goods and services it becomes a unit of________
8. If you decide to hold onto money, money will keep its value s so it serves as a store of_____________
9. Another word for a general increase in prices, or a rapid increase in prices is called____________ money does not function as well as a store of value when an economy experiences_________. If there is 10% inflation during any one year if you sold your VCR for $100 at the beginning of the year, you would need $110 to replace it at the end of the year, a rapid increase in price which is the definition of____________
The Six Characteristics of Money
Coins and paper bills used as money are called________
11. Money must have at least_______ characteristics in order to serve our economy well.
12. The physical wear and tear that comes with being used over and over again means that money must be____________
13. People have to be able to take money with them as they go about their daily business, and be able to transfer money from one person to another person easily, this is an example of________
14. To be useful money must be easily divided into smaller denominations or units of value, so people only have to use as much of it as is necessary for any exchange this is an example of_____________ Spanish coins in fact came to be called pieces of___________
15. People must be able to count and measure money accurately, an other words to units of money must be uniform, that is in terms of what they will buy, a dollar bill always buys a dollars’ worth of goods, this is an example of__________
16. One of the characteristics that money must have in order to be useful is that the supply must be controlled, hard to duplicate________________
17. Lastly, the objects that we use as money must be accepted for goods and services throughout the economy as a whole, this is called_____________