1. NEXT Warm Up #23 Answer the questions to the following video.

2. NEXT Class Confession We the Senior Class of 2016 will complete ALL of our assignments to best of our abilities and behave appropriately in class. We will respect all faculty, staff, substitutes, classmates, and especially Mr. Wilcox. We will graduate on time May 20, 2016 and become productive citizens in society.

3. NEXT SSEMI1b. Explain the role of money as a medium of exchange and how it facilitates exchange. Determine and define vocabulary. Identify key terms within the standard. Define each term. ________________________________________

4. NEXT Scaffold understanding of the standard(s) and/or element(s). Paraphrase the standard(s) and/or element(s). Rewrite the standard including synonyms or brief definitions in parentheses and in a different color following the key terms found in step 1. Explain (clarify) the role (part) of money (funds) as a medium (middle) of exchange (interaction) and how it facilitates (helps) exchange.

5. NEXT Money: Its Functions and Properties SSEMI1b Explain the role of money as a medium of exchange and how it facilitates exchange.

6. NEXT What is Money? Money is anything that people commonly accepted in exchange for goods and services.

7. NEXT What functions does money serve? Medium of exchange A standard of value Store of value

8. NEXT Medium of Exchange Any item that sellers accept as payment for goods and services. Barter—exchanging goods or services for other goods or services –inefficient: both people must want what the other one has to exchange

9. NEXT Standard of Value Provides people with a way to measure the relative value of goods and services by comparing their prices.

10. NEXT Store of Value It can be saved, or stored for later use.

11. NEXT 5 Characteristics of Money Acceptability Divisibility Durability Portability Stability in Value

12. NEXT Acceptability People are willing to accept money in exchange for their goods and services.

13. NEXT Divisibility Ability of money to be divided into smaller units.

14. NEXT Durability Ability to be used over and over again, and can withstand wear and tear.

15. NEXT Portability Ability to be carried from one place to another and transferred from one person to another.

16. NEXT Stability in value Must be stable in value

17. NEXT 3 Types of Money A. Commodity Money An item that has a value of its own –Ie. Gold and silver (specie), diamonds, etc. B. Representative Money An item that has value because it can be exchanged for something else of value –Ie. Bills that were redeemable for gold or silver. C. Fiat Money A government decree says that it has value. –Ie. Coins and paper money in the U.S.

18. NEXT What forms of money does the U.S. take? A.Coins and Paper Money B.Demand Deposits 1. Checking accounts (“on demand” at any time) C.Near Money 1.Savings accounts 2.Time deposits a. CD’s & Bonds

19. NEXT Closure Activity #22 Suppose that you and your classmates decide to establish a monetary system for you school’s money. What will you use as currency? Explain why you chose that item, why it functions as money, and how it matches the characteristics of money. 10 mins.

20. NEXT Show What You Know! Georgia Milestone Practice Question When people put money in a savings account, money is serving as a A.Store of value B.Medium of exchange C.Standard of value D.All of the above

21. NEXT Show What You Know! Georgia Milestone Practice Question If the smallest unit of U.S. money was the $100 bill, which characteristic of money would it not meet? A.Durability B.Portability C.Divisibility D.Acceptability

22. NEXT Show What You Know! Georgia Milestone Practice Question What is the system of exchange that does NOT involve money? A.Haggling B.Barter C.Free exchange system D.Debit exchange system

23. NEXT The End Any Questions? Any Concerns? Any Comments? Any Questions? Any Concerns? Any Comments? Any Questions? Any Concerns? Any Comments?

24. NEXT Chapter 10 Money Quiz Tomorrow! Money Medium of exchange Barter Standard of value Store of value Durability Portability Acceptability Commodity Money Representative Money Fiat Money Currency Demand deposits Near money Divisibility Stability in value