Chapter 11

Currency Video Notes 1. What did we use before currency? 2. The first coins were minted around (place and time)? 3. What is considered currency? 4. Our money is called _____money. 5. Bills are made of what two things? 6. How much counterfeit money is in circulation? 7. What is done to combat counterfeiting? 8. Many European countries use the same currency, the _____________.

Currency Video

--moneyless economy that relies on trade Do we still barter today?? --of course!

Medium of Exchange—something accepted by everyone as payment for G & S. Unit of Account- used to express worth --dollars and cents Store of Value- allows purchasing power to be saved until needed

1. Portability --easily transferred 2. Durability --should not deteriorate when being held as a store of value

3. Divisibility --divisible into smaller units 4. Limited Availability --money loses its value when there is too much of it

Portable, Divisible, Durable and Limited Availability

--there were over 10,000 different currencies from states --In 1863 the gov’t issued gold certificates (currency backed by gold) and in 1886 added silver certificates

Advantages of the standards: 1. people felt secure 2. prevents the gov’t from printing too much money Disadvantages of the standards: 1. Gold stock couldn’t keep up w/ growth 2. Value of gold is not fixed

What “backs” the money supply? consumer confidence in the gov’t ability to keep its value stable

Credit Cards Are they money? No, they are short term loans

10 things about money things you might not know

How is Money Made? How Stuff Works Website

How Much Money Is There on Earth Video Take 10 notes on anything you find interesting or something new that you learned. You will turn in your notes.

In Plain English Video Take notes Focus on the –Board of Governors (BoG) –Federal Reserve Banks –Federal Open Market Committee (FOMC) –You will use these notes along with the currency video notes for a quiz tomorrow.