Section Outline 1 of 8 Money and Banking Section 1: Money I.The Functions of Money II.The Characteristics of Our Money III.The Value of Our Currency Color Transparency: The Story of a Check Section Reading Support Transparency

2 of 8 Money and Banking Section 1: Money Main Idea Money is essential to our economic system, and it provides consumers with a convenient and accurate means of paying for goods. Key Terms Bartering Currency

The Functions of Money Bartering Exchanging goods and services The medium of exchange Money A standard of value What money can get you A store of value Value of saving money 3 of 8 Money and Banking Section 1: Money

4 of 8 Money and Banking Section 1: Money The Characteristics of Our Money Currency: the coins and paper bills used as money in an economy Six Characteristics of Money Our money is generally acceptable. Our money can be counted and measured accurately. Our money is durable and not easily destroyed. Our money is convenient and easy to carry and use. Our money is inexpensive to produce. Our money supply is easily controlled.

5 of 8 Money and Banking Section 1: Money The Value of Our Money Our currency is made out of metal coins and paper...so why is it worth anything? This note is legal tender for all debts, public and private. The coins and bills in our currency are backed by the government, and that is why they are worth something.

Money and Banking: Section 1 Color Transparency: The Story of a Check 6 of 8

Money and Banking: Section 1 Color Transparency: The Story of a Check 7 of 8 1. Where does the check-clearing process begin? Sarah Dowling writes a check for the purchase of a book. 2. In what way is paying for her purchase by check helpful to Sarah? The check represents money and is less risky to send through the mail than cash. It also provides a record of the payment.

Money and Banking: Section 1 Section Reading Support Transparency 8 of 8