2. Something of value Over the last 10,000 years the material form that money has taken has changed considerably from cattle and cowrie shells to todays electronic currency

3. Barter is the exchange of resources or services for mutual advantage Dates back tens of thousands of years possibly the dawn of modern humans Barter pre-dates the use of money

4. One the back of your notesheet: You live in a barter economy…what are five things you need to live that you must barter for? What good or services can you offer to get these? Think of your skills and abilities, what do you have to offer? What can you trade? Make a list of bartering in todays society. Barter and trade with each of your classmates. Example: I bake a lot but Mrs. Hahn does not. Mrs. Hahn has a Chicken Soup book I really want to read. So, I am going to offer to bake for the party she is planning next week in return for using her Chicken Soup books.

5. Cattle (9000-6000 B.C.) Cowrie Shells (1200 B.C.) First Metal Money and Coinage (China, 1000 B.C.) Modern Coinage (Turkey, 500 B.C.) Leather Money (China, 118 B.C.) The Nose (Ireland, 800-900 A.D.) Paper Currency (China, 806 A.D.)

6. Potlach (1500)- the exchange of gifts at banquets, dances, and various rituals Wampum (1535)- strings of beads made from clam shells used by North American Indians as money. Wampum means white, the color of the clam shells and the beads

7. 1816-England made gold a benchmark of value Value of currency was pegged to a certain number of ounces of gold Helped to prevent inflation of currency 1900- U.S. went to the gold standard 1930- Because of the depression the U.S. began a world wide movement to end tying currency to gold

9. Money serves three purposes: Medium of Exchange- People accept money in trade for goods and services Standard of Value- the value of a good or service can be measured with money Store of Value- money can be saved and used in the future

10. Scarce Durable Portable Divisible Stable Acceptable

11. Fiat money- money with no real value except the governments power that backs it Cash Legal Tender U.S. Currency is no longer backed by gold

12. Cotton and linen rag paper, which has a distinctive, pliable feel and has tiny red and blue fibers embedded in it Color-shifting ink Denominations $1, $2, $5, $10, $20, $50, $100 Nearly all purchases we make involve amounts less than $20

13. Series Serial Number Portraits and Emblems Size In God We Trust

18. Federal Deposit Insurance Corporation Part of the federal government Makes rules for banks in all 50 states, District of Columbia, Virgin Islands, Guam, and Puerto Rico

19. Located in Washington, DC with regional offices throughout the U.S.

20. The FDIC's biggest job is insuring the savings of millions of Americans in all the FDIC insured banks across the U.S. Visits banks on a regular basis to ensure they are following all rules and regulations Operating profitably and fairly

21. When a bank has a sign on it that says "Insured by FDIC" it means that if the bank doesn't have enough money to pay back the people it owes money to, including the bank's depositors, and is closed, the FDIC will make sure all of the depositors get their money Up to 250,000 per depositor, per bank.

22. The Great Depression of the late 1920s and early 1930s caused financial problems Stock Market crashes led to bank runs People who had money in banks lost some or all of their money

24. President Franklin D. Roosevelt June 1933- FDIC was created to provide a federal government guarantee of deposits The guarantee says a person's money, within certain limits, would be safe. Since the start of FDIC insurance, no one has lost a cent of insured money because of a bank failure

25. the Fed or bankers bank Central bank of the U.S. Created by congress Provide safer, more flexible, more stable monetary and financial system December 23, 1913- President Woodrow Wilson signed the Federal Reserve Act into law

26. Conducting the nation's monetary policy influencing money and credit conditions in the economy Supervising and regulating banks and other important financial institutions ensure the safety and soundness of the nation's banking and financial system protect the credit rights of consumers Providing certain financial services to the U.S. government, U.S. financial institutions, and foreign official institutions Plays a major role in operating and overseeing the nation's payments systems.

27. Bureau of Engraving and Printing Federal Reserve Your bankYou

28. When money is put into an interest bearing account (Savings, CDs, mutual funds, and some checking accounts) interest is earned Interest (in this unit) is money paid to customers for using their account

29. I= p x r x t or I=prt I= interest p= principal- the amount in the account r= interest rate- annual percentage of the principal that is accruing interest t= time- length of time the money is in the account

30. What if money is invested for less than 1 year? Time will be expressed as part of a year (ex. 6 months= ½ year or.5, 180 days = 180/360 or.5)

31. What fraction of a year are the following times, assuming there are 360 days in a year? 180 days ______________ 90 days _______________ 365 days ______________ 3 months ______________ 9 month ______________

32. PrincipalRateTimeInterest i.e.$300.006%6 months$9 $4500.009%180 days $800.005%90 days $3000.0010%365 days $9500.0012%3 months $1000.0010%9 months $45280.0014%6 months

33. Interest Rate As a Percent Divide by 100Interest Rate As a Decimal 10%10/100.10 6%6/100.06 6.25%6.25/100.0625 125%125/1001.25

34. Answer the following questions on your own. 1) Isabella deposited $500 into a savings account at a local bank that earned 5 ½ % interest per year. How much interest does she earn per year? _______________ 2) How much interest does a $10,000 investment earn at 5.6% over 18 years? _________________

35. Complete the table below: PrincipalRateTimeInterest i.e.$300.0066 months$9 1$700.009 ¼180 days 2$800.005 ½90 days 3$3000.0010 ¾365 days 4$9500.0012 ¼3 months 5$5125.0010 ¾3 years 6$2250.005165 days

36. When time is more than one year PrincipalRateTime (years) InterestTotal Paid Ex.$450.006%2$54.00$504.00 1$4500.009%6 2$800.005%3 3$3000.0010%5 4$9500.0012%2 5$1000.0010%1 6$45280.0014%2

37. To find the rate you must convert your percent into a fraction Interest Rate As a Percent Divide by 100Interest Rate As a Decimal 10%10/100.10 6%6/100.06 6.25%6.25/100.0625 125%125/1001.25

38. To find the time (t), if less than one year, you must divide by the number of days or number of months Ex. 3 months would be divided by 12, the number of months in a year, to find what portion of the year you are calculating in months. 3 months =.25 year Ex. 180 days would be divided by 365 (or 360 if stated) to find what portion of the year you are calculating in days.

39. Karen invests $300 into a CD for 5 months at a rate of 6%. What will Karen make in interest? What will Karen make total? Karen invests $500 into a CD at a different bank for 9 months at a rate of 3 ¾%. What will Karen make in interest? What will Karen make total?