1. Miss Smith 7th Grade Civics *pgs. 504-509
Money and Credit
Miss Smith
7th Grade Civics
*pgs

2. Characteristics of Currency
Currency- Coins and paper money
3 common features:
Easy to carry
Durable
Have a standard form and considered legal by the gov. that issues it
What problem arose in the U.S. under the Articles of Confederation due to a lack of standard currency and how was it solved? Each state issued its own currency with different values and exchange rates, making trade between states difficult; the Constitution granted Congress the sole right to coin money and regulate its value
Why do you think it is important for currency to be durable? So people can keep and use it over long periods of time without worrying that it will become damaged, which could render it worthless

3. Characteristics of Money
Two mints (plants where coins are made) in the U.S.
In Philadelphia, PA and Denver, CO
Paper money is printed in Washington, D.C.
Where are coins and bills made in the U.S. today?

4. Checks
People are NOT required to accept checks as legal tender because they are not issued by the federal gov.
Intentionally writing checks for amounts of money you do not have in your bank account is a crime

5. Like electronic checks
Debit Cards
Like electronic checks
How are checks and debit cards similar? Both are used to make payments from a checking account; a debit card is like an electronic check
Which would you prefer to use, a check or a debit card? Why?

6. Credit and the Economy
Using credit means you can buy something now with the promise to pay for it later
Interest is a payment charged for borrowed money

7. Charge and Credit Cards
Charge cards are issued by stores
Can only be used in the store that issues them
The store lends the money to be paid back
Banks issue credit cards
Can be used almost anywhere
The credit card company lends the money to be paid back

8. Credit and the Family
Long-term Credit- loans payable over long periods
Used to make big purchases like cars, major appliances, homes
Short-term credit- loans that are repaid over a short period of time
Stores can repossess, or take back, purchases that have not been fully paid for
What is the difference between long-term credit and short-term credit?

9. Credit and the Family
Bankruptcy- legal declaration that a person or business cannot pay debts owed
A bankruptcy judge must excuse the person from debt or allow them to pay a reduced amount
This can hurt your credit rating/score for years
Creditors- people who are owed money
Why would a person or business choose to declare bankruptcy? If the person or business had debt that they could not repay

10. Business Credit and the Economy
*Do not write
How can a merchant arrange to buy goods if he or she does not have enough money to pay for them?
Why is credit important to the U.S. economy as a whole?
The merchant can buy the goods on credit from the manufacturer or can borrow money from the bank
It is important to the purchase and sale of goods and services in a free market; consumer spending is an important part of the economy– as consumers buy more things, the economy grows