1. Chapter 11

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

3. Why do we use money? Why is there money?—by Steve ReffWhy is there money?

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

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

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

8. --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

13. 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. People could cash their $ in for all of the gov’ts gold 3. Value of gold is not fixed

18. Federal Reserve Bank Video --take your own notes Three Parts of The FED and the function of each.