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Bell Ringer:
 We’re going to begin talking money. Do you know
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which presidents (or other people) are listed on the
following currency/coin? Write what you know and
we’ll review the correct answers.
$1--?
$100?
$2--?
1¢?
$5--?
5¢?
Today:
--Chapters 12&13 TEST—How did you
$10?
10¢?
do? What’s your current Bus. Econ
$20?
25¢?
grade? What can you still turn in??
$50?
--LNE Winners of SMG??!!??
--Functions & Characteristics of Money
Click a Team ID to access that team's portfolio.
# of Teams
Requested
Class Name
Advisor
Bus Econ Pd 2
Bus Econ Pd 4
Team IDs
Rankings
Total Equity
Password
~
NE_40_T292215
xxxxxxxxx
5
NE_40_ZZ230
NE_40_ZZ231
NE_40_ZZ232
NE_40_ZZ234
NE_40_ZZ235
160
204
172
177
219
$100,327.71
$99,766.95
$100,200.48
$100,173.72
$98,907.26
xxxxxxxxx
xxxxxxxxx
xxxxxxxxx
xxxxxxxxx
xxxxxxxxx
6
NE_40_ZZ236
NE_40_ZZ237
NE_40_ZZ238
NE_40_ZZ239
NE_40_ZZ240
NE_40_ZZ241
166
251
85
192
154
225
$100,236.71
$96,425.73
$102,626.76
$100,007.99
$100,386.17
$98,766.44
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xxxxxxxxx
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Bryant
Anthony
Nate
SMG Grades—on Grade Report
Would you like additional points? See my web
site . . .

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Amanda
Elise
Talon
SMG Grades—on Grade Report
Would you like additional points? See my web
site . . .
Chapter 14
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The basis is voluntary exchange
Bills, coins, checks
Historically – shells, gold, or sheep
Native Americans used wampum – beads
wampum made from shells
People in the Fiji Islands used
whales’ teeth
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Money: anything customarily used as a
medium of exchange, a unit of accounting,
and a store of value
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Medium of exchange: use of money for
exchange for goods or services
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Barter: exchange of goods and services for
other goods and services
 This tactic would be used if money didn’t exist
 Requires a double coincidence of wants
▪ Each party must want exactly what the other has
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Unit of accounting: use of money as a
yardstick for comparing the values of goods
and services in relation to one another
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Each nation uses a basic unit to measure the
value of goods, just as it uses a foot or meter
to measure distance
Units by nation
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United States: Dollar
Japan: Yen – 0.01 US Dollar
Europe: Euro – 1.36 US Dollar
Brazil: Real – 0.45 US Dollar
India: Rupee – 0.016 US Dollar
Russia: Ruble – 0.031 US Dollar
Australia: Dollar – 0.94 US Dollar
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A single unit of accounting also allows people
to keep accurate financial records
 Debts owed
 Income saved
 Salaries
 Many more
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Store of value: use of money to store
purchasing power for later use
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People usually receive their money income
once, twice, or four times a month, but spend
it at all points during a pay period
Storing your income in the form of cash or in
a checking account keeps the value for when
you want to use it at a later time
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Anything that people are willing to accept in
exchange for goods can serve as money
Historic examples include the following:
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Cattle
Salt
Animal hides
Gems
Tobacco
(first page of notes should be completed)
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Chapter 14 Vocab
 After completing the notes, you should be able to
complete at least four or five of these
▪ DO NOT TURN IN—KEEP IN YOUR FOLDER UNTIIL WE
FINISH IT
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Guided Reading 14-1
 Feel free to use your textbook
 If you finish it, turn it in. It is NOT due, tho.
▪ It’s due on TEST DAY

Bell Ringer:
 More trivia about money and how long it lasts:
 “Guess” the number of years the following notes
remain in circulation before they are no longer able
to use.
▪ For Example: the $1 bill lasts 5.8 years
▪ What about??
▪ The $5? The $10?
The $20?
The $50?
The $100?
(turn in bell ringer form)
▪ TRADE WITH CUBA NEWSPAPER ARTICLE
▪ Nebraska Unemployment Rate. . .
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Commodity Money: a medium of exchange
such as cattle or gems that has value as a
commodity or good aside from its value as
money
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Representative Money: Money that is backed
by an item of value, such as gold or silver
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Fiat Money: money that has value because a
government fiat, or order, has established it
as acceptable for payment of debts
▪ “Fiat”—latin word for “it shall be”—based on faith
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Legal Tender: money that by law must be
accepted for payment of public and private
debts
What Gives a Dollar Bill its Value?

What is Bitcoin?
 Watch this 3 minute video to get an overview

How many Bitcoins can you purchase today
with 1 US dollar? (Bitcoin exchange rate)
Section 2
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During the early colonial period of American
history, England did not permit the new colonies
to print money or mint coins
 Bartering became common
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To help pay for the Revolutionary War, the
Continental Congress issued bills of credit, called
Continentals, that could be used to pay debts.
 So many of these were issued that they became
worthless and many places wouldn’t accept them
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The Constitution, ratified in 1788, gave Congress
the power to mint coins.
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In 1792, Congress passed the Coinage Act,
which established the dollar as the basic unit of
currency for the nation.
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Our nation’s new leaders were torn between a
national banking system and a state-chartered
banking system.
 Today we have both
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Why do we choose one bank over another?
Different banks offer different services to
entice customers.
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Overdraft checking: checking account that
allows a customer to write a check for more
money than exists in his or her account
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Electronic Funds Transfer (EFT): system of
transferring funds from one bank account
directly to another without any paper money
changing hands
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Automated Teller Machines (ATM): unit that
allows consumers to do their banking without
the help of a teller
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With EFT, comes the chance of identity theft.
Since everything is stored in a computer, if
someone knew how to get around the
security, your information and money could
be stolen!
The Electronic Funds Transfer Act of 1978
describes the rights and responsibilities of
participants in EFT systems.
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EFT customers are responsible for $50 in losses
when someone steals or illegally uses their ATM
cards, if they report the cards missing within 2 days.
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If they wait longer, they could be held responsible
for up to $500!
Section 3
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Many people use the term “money” to refer
only to “cash” but there are many different
forms of money
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Checking account: account in which
deposited funds can be withdrawn at any
time by writing a check
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Bell Ringer (new form)
 Explain in 2-3 sentences what fiat money is.
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Today: Chapter 14, Section 3
What are the types of money?
The difference between M1 and M2?
The difference between debit/credit cards?
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Checkable deposits: funds deposited in a
bank that can be withdrawn at any time by
presenting a check
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Does your employer pay you using a debit
card?
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Thrift institutions: mutual savings banks,
Savings and Loans, and credit unions that
offer many of the same services as
commercial banks
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Credit cards are technically not “money.” They
defer payments rather than complete
transactions that ultimately involve the use of
money.
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Debit card: device used to make cashless
purchases; money is electronically withdrawn
from the consumer’s checkable account and
transferred directly to the store’s bank account
 Usually within 72 hours
 Debit cards vs. Credits Cards short video (8 min)
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Near moneys: assets such as savings
accounts that can be turned into money
relatively easily and without the risk of loss of
value
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M1: narrowest definition of the money supply;
consists of moneys that can be spent
immediately and against which checks can be
written
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M2: broader definition of the money supply;
includes all of M1, plus such near moneys as
savings deposits, small-denomination time
deposits, money market deposit accounts, and
retail money market mutual fund balances
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Fed information on M1&M2
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Bell Ringer: Without just rewriting the definitions,
please state the difference of M1 and M2 in discussing
money supply. Use at least 2 sentences.
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Today:
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Money supply chart
Chapter 14 Vocab/Guided Reading
Debit cards vs. Credits Cards short video (8 min)
Take Away Questions from video
SMG time in lab????