1. The Federal Reserve

2. The Federal Reserve
Janet Yellen, first ever female Chairperson of the Board of the Federal Reserve

3. The Federal Reserve

4. The Federal Reserve Monetary Policy
Actions of the Federal Reserve to influence the level of real GDP and the rate of inflation in an economy.
GDP refers to Gross Domestic Product, which is the value of all final goods produced within an economy during the year.

5. The Federal Reserve Types of Monetary Policy
Contractionary Monetary Policy (tight money)
Reduces the money supply
Expansionary Monetary Policy (loose money)
Increases the money supply

6. What is MONEY?

7. Money has 3 functions It is a medium of exchange
It is a unit of accounting
It is a store of value

8. Medium of exchange Unit of accounting
the seller will accept it in exchange for a good or service.
Unit of accounting
Use of money as a yardstick for comparing the values of goods and services in relation to one another.

9. Store of value
Use of money to store purchasing power for later use.

10. Bartering was also a common practice in earlier societies.
Money hasn’t always been bills. In earlier societies other items of value were used as money. Items such as seashells, feathers, polished beads (wampum), copper, gold, silver, and corn.
Bartering was also a common practice in earlier societies.
Exchange of goods and services for other goods and services.

11. Characteristics of money
Durable
Portable
Divisible
Stable in value
Scarce
Accepted

12. Types of money Commodity money Representative money
A medium of exchange that has value as a commodity or good aside from its value as money.
Representative money
Money that is backed by an item of value, such as gold or silver.

13. Types of money Fiat money
Money that has value because the government has established it as acceptable for payment of debts.

14. Legal Tender
Money that by law must be accepted for payment of public and private debts.

15. Types of money in the US
Currency
Checks
Credit Cards
Debit Cards

16. Currently, only 7 denominations are printed.$1 $2 $5
$10
$20
$50
$100

17. Denominations that used to be printed, but are no longer printed
Denominations that used to be printed, but are no longer printed. Haven’t been printed since 1946.
$500
$1,000
$5,000
$10,000

18. Average life span of currency
$1 bill life span is 18 months
$2 bill undetermined due to lack of use
$5 bill life span is 16 months
$10 bill life span is 18 months
$20 bill 24 months
$50 bill life span is 4 ½ years
$100 bill life span is 7 ½ years
Life span of a coin is 25 years

19. Who is on the money? $1 $2 $5 $10 George Washington Thomas Jefferson
Abraham Lincoln
$10
Alexander Hamilton

20. Who is on the money? $20 $50 $100 Andrew Jackson Ulysses S. Grant
Benjamin Franklin