1. Bell Work  Do you have a bank account? Is it a saving or a checking account?  Do your bell work on your packet. There is room on the last page.

2. NCSS and MDE NCSS Standards: 1 Culture 6 Power, Authority, and Governance 7 Production, Distribution, and Consumption MDE Competencies: 1 2 4 5

3. Chapter 5 Banking and Money Oak Grove Economics

4. History Of The Banking System

5. During the American Revolution Continental Bills Not This One

6. Constitution Levy Taxes Coin Money

7. Federalist VS. Anti- Federalist Federalist favored centralized banks Anit-Federalist favored state chartered banks

8. Bank of the United States

9. 4 Functions  1. To hold tax funds collected by the federal government.  2.To assist the federal government in tax collection, borrowing, and interstate trade regulation  3.To issue representative money in the form of bank notes.  4.To ensure that state-chartered banks held sufficient gold resources to cover bank notes that they issued.

10. Say No To National Banks What National Bank? Mr. President we need you to renew the bank charter National Bank? http://www.youtube.com/watch?v=vYh7pato4uE

11. United States Note Representative money during the Civil War.

12. Coinage Act 1873 The government no longer purchased silver and moved to the gold standard. The Government Silver

13. Gold Standard I pity the fool who wants silver.

14. Federal Reserve Act

15. Federal Reserve Note

16. Stock Market Boom Stock prices were inflated and did not represent the worth of the company.

17. Stock Market Crash October 29, 1929

18. Bank Holiday All banks were closed.

19. Federal Deposit Insurance Coporation Created to provide insurance for customer deposits.

20. Lifted Bank Regulations

21. Bank Bailout http://www.youtube.com/watch?v=fr8EaOKKCNs

22. Real Estate Bubble

23. Bartering In a series of trades, Kyle MacDonald traded this red paper clip for other items until he ended up owning a house. http://www.youtube.com/watch?v=BE8b02EdZvw

24. Functions of Money  A medium of exchange.  A unit of account.  A store of value. The functions of money is to not make it rain but is: http://www.youtube.com/watch?v=yeTrIJphoSg

25. A Medium of Exchange  As a medium of exchange, money acts as an intermediary or link Not this kind of medium but:

26. Unit of Account The unit of the weights are measured in pounds or grams. ___ The unit of height are measured in feet or meters. The unit of value is measured in money.

27. A Store of Value

28. Characteristics of Money  Durability  Portability  Divisibility  Uniformity  Limited Supply  Acceptability http://www.youtube.com/watch?v=AQ5fWxF7LIA

29. Durability

30. Portability

31. Divisibility

32. Uniformity

33. Limited Supply

34. Acceptability

35. Types of Money  Commodity  Representative  Fiat  Electronic http://www.youtube.com/watch?v=mmBSkTtGqf4

36. Conclusion  The National Bank in 1791 had 4 functions.  The First National Bank and Second National Bank were vetoed.  The Coinage Act of 1873 put the U.S. on the gold standard.  The Federal Reserve Act centralized banking but into districts.  A “run” on the bank happens when large number of people withdraw money from the bank.  The “Bank Holiday” closed all banks during the Great Depression to allow the federal government to strengthen, reorganize, and reopen banks.  Questionable and illegal mortgage practice involved issuing mortgages to people who normally do not qualify for them.  This caused many foreclosures on homes.

37. Bibliography For pictures of old money and federal reserve notes refer too: http://www.coinnews.net/2010/12/16/exceptional-notes-headline-heritage-tampa- fun-currency-auction/ For the pictures of the cows refer to: http://newsletters.creativecow.net/newsletters/2007/10-17/index.html For pictures of the stock market crash and New Deal related photos refer to: http://www.stock-market-crash.net/1929-crash/ For real estate bubble cartoon refer to: http://www.intoon.com/cartoons.cfm/id/1787 For maps refer too: http://www.tlnt.com/2012/11/29/federal-reserve-hiring-is-improving-but-skilled- labor-is-in-short-supply/ For Revolutionary, Federalist and Anti-Federalist refer to: http://meettommerkey.com/fiat-money/