1. Who’s On The Bills?

2. THE QUESTION OF THE PENNY

3. Let’s Take A Closer Look….

4. Life Expectancy (Years)
Denomination of Bill
Life Expectancy (Years) $1
5.9 $5
4.9
$10
4.2
$20
7.7
$50
3.7
$100 15

5. Why do we use currency?

6. Why don’t we use gold and silver as currency?

7. 6 Characteristics of Money:
Durability-survives wear & tear
Portability-easy to carry around
Divisibility-can easily make change
Uniformity-two units have same value
Limited supply-just amount in circulation
Acceptability-taken as legal tender by all

8. Medium of Exchange Unit of Account Store of Value
3 Functions of Money:
Medium of Exchange
Unit of Account
Store of Value

9. Medium of Exchange:
A commodity accepted by common consent as:
1. payment for goods & services
2. settlement of debts & contracts.
Efficient alternative to bartering
Barter- direct exchange of goods & services w/out the use of money.

10. Unit of Account:
Common denominator of value of goods & services in which prices are stated & accounts are recorded.
U.S. dollar often used as unit of measurement in international transactions.

11. a means of conserving purchasing power for a future time.
Store of Value:
a means of conserving purchasing power for a future time.