Name__________________ Date due__________date turned in___________
Posted on internet Monday 04_16
Econ: Chapter:10 Section: 1.1 Date Due: 04_16 Pgs 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.
Sources of Money’s Value:
1. What makes money_____________? The money in your pocket, is
durable, portable, easy divisible, uniform, and in limited
supply and accepted around the world but of itself has very
little___________.
2. What makes money? Not just one thing next one example but
perhaps________ things make money valuable. It can depend on
whether the money is a____________, representative,
or___________ money.
3. Commodity money consists of___________ that have value, for
example salt, cattle, and precious stones have often been used
as money. In the American colonies, tobacco, corn and cotton all
served as commodity money. T
F. But commodity money is often
not portable, durable or divisible. T F
4.______________ money makes use of objects that have value
because the holder can exchange them for something else of
value. An I O U is worthless, what is valuable is what the piece
of paper presents usually a____________. Early___________ money
to the form of paper receipts for gold and__________. People
leave their gold and silver in the goldsmiths_________ and carry
around receipts to show how much money they had. TF
5. During the American Revolution the Second Continental
Congress issued___________ to finance the war. However, since
Congress had no power to collect____________ there was no gold
or silver. The federal government was dependent on__________
from the states, until the Articles of Confederation were
replaced by the_____________." Not worth a Continental".
6. Later the government issued___________ money the form of
silver and gold___________, these were backed by_____ or silver.
The government had to keep vast supplies of gold and silver in
case people would_______ them. Silver certificates circulated
until 19_________. For the most part the government stop
converting paper money into silver or________ in the 19
7. Another word for an order or decree or legal __________
is_________ money. On the left side of George Washington's
picture is" this note is legal tender for all debts, public and
private". Your money is valuable because_________ _____ __
__.
8. United States money today is__________ money. It has_______
because the government has decreed that it is an__________ means
to pay debts. It also remains in__________ supply making
it________. Controlling the supply of money is the job
of_________ and it is essential for the_________ system to work.