1. Anything that serves the three basic functions. Money

2. Copyright © Texas Education Agency, 2012. All rights reserved2 “Copyright and Terms of Service Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: 1)Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency; 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency; 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way; 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee. Call TEA Copyrights if you have any questions.

3. Money Exchanged for goods and services Currency Paper- based Not coins Note Because “Federal Reserve Note” is at the top of the face The term “note is a formal term that we interchang e with the term “bill” Other Terms Copyright © Texas Education Agency, 2012. All rights reserved 3

4. Can be used to buy good and services Medium of exchange Keeps its purchasing power over time Store of Value Tells you how much different goods and service are worth Unit of account Copyright © Texas Education Agency, 2012. All rights reserved Functions of Money 4

5. ...based on the “Functions of Money” criteria... What else could serve effectively as money? Copyright © Texas Education Agency, 2012. All rights reserved 5

6. Take a closer look... at the 3 functions of MONEY Copyright © Texas Education Agency, 2012. All rights reserved 6

7. Medium of Exchange: Copyright © Texas Education Agency, 2012. All rights reserved 7

8. Store of Value It keeps its purchasing power over time. People expect to be able to hold money and use it in the future. Copyright © Texas Education Agency, 2012. All rights reserved 8

9. Unit of Account How much goods and services are worth. In the United States, prices are recorded in dollars and cents Copyright © Texas Education Agency, 2012. All rights reserved 9

10. Bananas? Copyright © Texas Education Agency, 2012. All rights reserved 10

11. SEASHELLS? Copyright © Texas Education Agency, 2012. All rights reserved 11

12. Cows? Copyright © Texas Education Agency, 2012. All rights reserved 12

13. Plastic Coins? Copyright © Texas Education Agency, 2012. All rights reserved 13

14. Flash from the past... These WERE used as money Copyright © Texas Education Agency, 2012. All rights reserved 14