Money What is it? Why do we have it? What do we do with it? How does it help our economy? Does it grow on trees? How does it differ from country to country? What can you learn from examining currencies?

Money Money is anything widely accepted as final payment for goods and services. Money makes trading easier by replacing barter with transactions involving currency, coins, or checks. People consume goods and services, not money; money is useful primarily because it can be used to buy goods and services.

Producers use natural resources, human resources, and capital goods, (not money) to make goods and services. Most countries create their own currency for use as money. Money encourages specialization by decreasing the costs for exchange.

Functions of Money Money serves as a medium of exchange by making trading easier. It replaces barter with transactions involving currency, coins, or checks. As a store of value, money makes it easier for people to save and defer consumption until the future. As a unit of account or measure, money is used to compare the market value of different goods and services.

Characteristics of Money Durable Easily divided Easy to carry Widely accepted Relatively scarce

1 Peso Front 1 Peso 1 Peso Back

5 Peso 5 Peso Front 69 5 Peso Back 69 5 Peso Front 5 Peso Back

10 New Peso 96 Front 10 New Peso 96 Back 10 Peso 10 Peso Front 10 Peso Back 10 Peso Front Peso Back 69

20 Peso Front Back Back 2 Back of Peso Front of Peso

50 Peso 50 Peso 98 Back 50 Peso 98 Front 50 Peso B Front 50 Peso B Back 50 Peso Front Peso Back 63

100 Peso 100 New Peso New Peso 92 Back 100 Peso Back100 Peso Front 100 Peso Back Peso Front 78

500 Peso 500 Peso Back 500 Peso Front

1000 Peso 1000 Peso Back 1000 Peso Front

2000 Peso 2000 Peso Back Peso Front 84