1. Money and Banking
Chapter 10

2. 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 _____________.

3. Currency Video

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

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

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

7. Portable, Divisible, Durable and Limited Availability

8. Take out a dollar bill if you have one.

14. different currencies from states
National Currency
--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

19. Video #2 How much money is there on Earth?
Write down the questions and answer as the video plays
(OPEN NOTES QUIZ TOMORROW)

20. 1. On average, how much money does a bank have in its vault
1. On average, how much money does a bank have in its vault?  from ____ to ______
2. How much change does the typical American household have laying around?
What does M1 include?
What does M2 include?
How can a person increase or decrease the money supply (this is illegal)?  
Bills have traces of drugs on them.  Why is the percentage so high?
Why is money so dirty?
Give an example of commodity money:  
We use _____________________ money.
What gives our type of money value?  

22. Time to Get Creative!!

23. Create your own currency bill
Amount--can be any amount
Design to prevent counterfeiting on BOTH sides.
Picture (of someone or something that is
important to you), year and your signature
on the FRONT
Saying on the BACK (ex: e pluribus unum)
Must be done in pen/marker and have at
least 2 colors.