MONEY AND BANKING
LEVEL: 2
SANDYS SECONDARY MIDDLE
SCHOOL
INSTRUCTOR: N. Warren-Swan
MONEY AND BANKING
 VOCABULARY
 Money
 Barter
 Currency
 Demand deposit
 Time deposit
 Withdrawal
 Interest
 Checkbook dollars
 Mortgage
 Deposit
 Line of credit
Objectives
 Describe the characteristics of money.
 What is barter?
 Define money.
 Think about what banking institutions do
that affects the everyday life of people.
BARTER
Barter is an ancient method of swapping goods
and services and is making a big comeback. An
increasing number of countries who strapped for
hard currencies are resorting to barter-type trade
agreements . Barter between or among nations is
called countertrade
Banking Careers
Tellers
Loan Officers
Investment Banker
Securities Analyst
Stockbroker
Finance Officers
Vault Custodians
Money and Banking
For more than 2000 years , money has been a
desirable good. Such items as seashells, salt,
tobacco, and pieces of metal have sometimes served
as money. Today we know quite a bit about how to
control the value of money without changing its
quantity.
*money is anything that is generally accepted in
exchange for goods and services.
Functions of Money
•Money acts as a medium of exchange-the means by
which goods and services are sold. An employee works
in order to be paid in money, which is used to buy the
things he or she wants
•A store of value-money may be used in many ways. It
can be spent, held in a checking or savings account, or
some other form. When it is used as a store of value,
money is saved and not spent.
•A standard of value-the unit by which all values are
measured.
Characteristics of Money
•Divisibility – ability to be divided into small
units(coins).
•Durability – money should be lasting and not
wear out quickly.
•Portability – easy and convenient to transfer and
carry about.
•Stability – money is considered stable when its
purchasing power is fairly constant
Objective: Describe the
operational functions of two
types of banking accounts.
A customer deposits money into an account and
receives a book of checks. Each check the customer
writes and signs is an order to the bank to pay on
demand.(checking/current)
Banks pay you interest for the money thqt you have in
your account, as they use it to generate
money.(savings/deposit)
Objective: Demonstrate the process of
maintaining a checking acccount.
 Student Activity:
 The student will :
 Write cheques,
 Fill in cheque registers
 Fill out a deposit slips.
 Read bank statements.
 Complete for Homework.
Banking Institution Effects on
Our Daily Lives
Services offered:
•DIRECT DEPOSIT
CURRENCY EXCHANGE
•SAVINGS ACCOUNTS
•CHECKING ACCOUNTS
•SAFE DEPOSIT BOXES
•LOANS
•MORTGAGES
•LETTERS OF CREDIT
ATM SERVICES
Objective: Identify, investigate
careers in banking.
 Systems analyst
 Investment portfolio manager
 Tellers
 Vault keepers
 Financial officer
 Investigate two careers of your choice
Objective: Use computer applications in
preparing documents used in the banking
industry.
Student Activity
Choose any two or come up with two forms of
your own.
Prepare an electronic cheque
Create an email
Create a deposit slip.
Create a credit card application.
Create a balance sheet
Activity 1Quick check
1. What are the three functions of money?
2. Name at least four characteristics of money.
3. Define money , barter and currency.
4. What is the most common form of money used in
Bermuda?
5. How is a bank like any other business?
6. Name three basic functions of a bank.
7. List four types of banks.
8. Define vocabulary terms and use in a sentence.
9. Write the currency for the 52 African countries.
Home Activity
 Case Study:Greg Malouf recently received a $10,000
cash gift from his Uncle Alex to use for the education
of his children, Jared and Rochelle. Uncle Alex had
kept the cash in a safe at home. Like other savers,
Uncle Alex did not need to use the $10,000 cash and
had set it aside. You have learned that banks accept
cash from savers who do not need to use their cash,
reserve a portion of the cash deposited, and loan out
the remainder as they see fit. For privilege of using
savers money banks pay them interest. Banks then
charge borrowers interest for the privilege of having
to put to immediate use. Thus banks and other
financial institutions are financial go between
between savers and investors.
Home Activity cont’d
They gather loanable funds from savers and make them
available to investors to use as capital, a factor of
production. From an economists’ point of view, was
Uncle Alex’s idea keeping the $10,000 cash in a safe
good for the economy.
Summary
 Money functions as a medium of exchange,
standard of value, and a store of value. The
characteristics of money include acceptability,
divisibility, and scarcity.
 All banks accept money in the form of
deposits to accounts, transfer money
between accounts, and create money by
giving out loans to individuals and
businesses.
 There are three types of banking
institutions:
 Commercial
 Savings and Loans
 Savings banks