1. Aim: How and why do we use money? Do Now: Suppose you are shopping for a new back pack or bag and want to get the best value for your money. Explain how money helps you to make your choice

2. Objectives 1-3 page 243 1. How do we use money? 2. How would you describe the characteristics of money? 3. Why does money have value? ----When done with your question discuss with your trio---Why is using money beneficial??—Answer the Aim: Why and how do we use money?

3. Based on the following slides 1. Summarize the history of money 2. Why does the Fed to go to great length to prevent fraud and theft of currency? 3. What are the limits of using silver or gold back currency or notes 4. Create 3 questions based on the slides and annotate each slide

4. Dollar Decoded Dollar Decoded Fed bank that issued the bill [Chi.] the bill [Chi.] Number corresponds to letter in circle indicating issuing Fed bank. First letter corresponds to issuing Fed bank Last letter tells how many times serial number has run

5. New background colors add an extra layer of complexity complexity for counterfeiters Ink appears either coppergreen copper or green, depending upon the angle at which the bill is viewed. 2 years The average $20 bill lasts 2 years. 5 billion twenties There are 5 billion twenties in circulation, enough to circle the earth 19 times. The $20 bill is the most counterfeited in the U. S. in the U. S., while $100 is most the $100 is most counterfeited abroad counterfeited abroad.

6. Great Seal of The U.S. The Great Seal (on the $1) was adopted in 1783. olivebranchsymbolizing The American Bald Eagle holds an olive branch-symbolizing peace13 berries & 13 leaves peace-with 13 berries & 13 leaves. In the left talon, the eagle holds 13 arrows-symbolizing war representing 13 colonies the original 13 colonies. The eagle’s head is turned toward the desire for peace olive branch showing a desire for peace. E Pluribus Unum – “Out of Many, One” Annuit coeptis – “favors undertaking” Novus ordo Seclorum – new order of the ages The pyramid stands for permanence and strength. A sunburst stands for the Deity. The All-Seeing Eye is a Masonic symbol representing the eternal eye of God

7. $700,000 Donald Stokes, in 2005, pleaded guilty to stealing $700,000 since 1998 from the Ft Worth Currency Center. His job was making sure flawed currency was shipped off to destruction. He was stopped for a routine traffic stop, then took off on a $79,000 high-speed chase. When stopped, he had $79,000 in flawed currency in his car, which he said he won in Reno]. Stokes faces 10 years in prison and a $250,000 in fine. During fiscal year (FY) 2007, the Bureau of Engraving and Printing will produce approximately 38 million notes a day with a face value of approximately $750 million. 95% of the notes printed each year are used to replace notes already in, or taken out of circulation. During FY 2007, 45.47% of the notes printed are $1 notes. During Fiscal Year 2007, it cost approximately 6.2 cents per note to produce 9.1 billion U.S. paper currency notes. took $1.7 million An employee in Washington took $1.7 million in $100 bills [ he snuck 1,700 $100 bills past his security]. He was caught when his bank teller reported his frequent large deposits in his bank.

8. paper notesWashing D.C. Our paper notes are printed at either Washing D.C. Ft. Worth Currency or the Ft. Worth Currency Center. Our coins are minted in Philidelphia, San Fran, Denver, and D.C.. West Point, NY has a storage facility Fort Knox Kentucky and NY FED house the gold bullion Dallas Fed vault The Dallas Fed vault is as big as a football field and will hold about $1 ½ billion. average householdhas over $70 dollars in coins The average household has over $70 dollars in coins in shoeboxes or jars. ones$40 each There are enough ones in circulation for everyone to have $40 each. $3.5 billion was printed last year. $22,500,000 ones are printed each day. $173 billion in coins in circulation$9 billion There are $173 billion in coins in circulation worth over $9 billion. 312 billion pennies There are 312 billion pennies. If stacked up, they would reach all the way to the moon. There are enough pennies for all of you have 1,138 pennies each 1,138 pennies each. 14 billion are minted each year. Lined up edge to edge, pennies would circle the earth 137 times.

9. New York Fed The New York Fed has more gold than any other vault in the world, including Fort Knox. With walls of steel and concrete several feet 63 countries thick, it has the gold of 63 countries, worth over $120 billion. Silver Certificates1878-1963 Silver Certificates were issued from 1878-1963. The first Federal Reserve notes were issued in 1963. Silver certificates could be converted into silver until 1964. This was terminated because the Treasury’s pile of silver was being depleted. Gold Certificates were issued from 1865-1933 Internally and were honored externally (other countries) until 1971. gold standard$35 of countries) until 1971. Under the gold standard, $35 of currency currency could be redeemed for one ounce of gold gold.

11. Colonial Times sent them back to Europe Colonists brought coins with them but sent them back to Europe to pay shortage of coinsIndian Wampum for European goods. This led to a shortage of coins, so Indian Wampum [1600-1800] – beads of polished clam shells strung in strands – was used counterfeiting wampum as money. It lost its value when they started counterfeiting wampum. Also used as money were staples of the local economies – such as tobacco, Nails and bulletsused for small change grain, and fish. Nails and bullets frequently were used for small change. first coin mintedpine tree shilling The first coin minted in the colonies was the pine tree shilling [12 pence willow and oak shilling or pennies ] [1652]. They also minted the willow and oak shilling. Hundreds Of different types of paper notes [such as the five shilling note] were printed in the colonies denominated in pounds and shillings and made reference to the crown of England for credibility.

12. Civil War Money Civil War Money 1860-1865 Both the Union & the Confederacy paid troops with notes. In 1861, the nation issued Greenbacks [1 st paper money issued by the G]. These $5’s, $10’s, & $20’s In 1862, U.S. notes, from $1-$10,000 replaced the Greenbacks. Because of widespread hoarding of coins, Congress issued 5, 10, 25, & 50 cent notes. They were called “paper coins” or“shinplasters.” The South issued Confederate notes. Note-holders were to be repaid in gold & silver after the Civil War. Northerners printed up counterfeit confederate notes so these notes increased 20-fold from 1861-1865 inflation increased9,200%.$2 billion.50 to $1,000 and inflation increased 9,200%. $2 billion from.50 to $1,000 printed.

13. Gold Certificates (1865-1933)Silver Certificates (1878-1964) Gold Certificates (1865-1933) & Silver Certificates (1878-1964) The largest was a $100,000 gold certificate which was not available to the public but was used only among Silver certificates$1 to $1,000 Fed banks. Silver certificates from $1 to $1,000. Federal Reserve Notes Federal Reserve Notes (1914) Modern coins are produced by mints in Phil., S.F., & Denver. Federal Reserve Notes make up more than 99.9% of today’s paper currency. The $1 note was not introduced until 1963 [previously the $1 silver certificate served as the $1 bill].

14. Aim: What are Monetary Standards? https://www.youtube.com/watch?v =48P7yOBZczQ&list=PL1NyXmIW11 _I6uoGBI8TMYegM46wHt8vu&inde x=1 How Money is Made – modern marvels

15. functions of money Medium of Exchange- accepted as payment for goods & services Measure of Value- shows worth of object/allows you to compare Store of Value- Goods & services can be changed into money, which can be saved for the future

16. forms of money Paper Currency- backed by gold and silver deposits in banks/or with no backing Specie- money in the form of metal coins

17. What are the characteristics of money? Portability- easily transferred Durability- Must not break when handled/or can be easily replaced Divisibility- Can be broken into smaller units Limited Availability- Money loses its value if there’s too much of it

18. Aim: What is money? HW: pg 248 # 2,3,4 264 # 2,3 275 # 2,4 All due Friday Quiz Friday Money, Gold, The Federal Reserve

19. Gold Standard In 1870’S, Congress passes the Gold Standard Act- dollar is worth 1/20 th ounce of gold can be exchanged for set amount of gold https://www.youtube.com/watch ?v=I2m3t2Yr8Vg https://www.youtube.com/watch ?v=I2m3t2Yr8Vg

20. Inconvertible Fiat Money Standard During the depression people were turning dollars in for Gold Since 1934- money cannot be changed into gold or silver Govt. manages the supply