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Writing Assignment 3 paragraphs 60%
Now that I have 4 months of high school left my plans
are…
Please explain what your plans are after graduation on
May 19th and what are your options when you graduate.
Please include places, time frame and the way you will
earn money to take care of yourself.
Due at the end of class. (1 paragraph equals 5 sentences)
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Warm Up #30
Answer the questions to the following video.
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Class Confession
We the Senior Class of 2017 will complete ALL of
our assignments to the 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 19, 2017 and
become productive citizens in society.
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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.
SSEMA2a
Explain (clarify) the roles/functions (part) of
money (funds) as a medium (middle) of
exchange, store of value (worth), and unit of
account/standard (usual) of value.
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Money: Its Functions and
Properties
SSEMA2a
Explain the roles/functions of
money as a medium of exchange,
store of value, and unit of
account/standard of value.
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Chapter 10
Money
KEY CONCEPT
• Money provides a low-cost method of trading one good
or service for another. It makes the system of voluntary
exchange efficient.
WHY THE CONCEPT MATTERS
• Money is important to everyone in our society. Imagine
what it would have been like to make those purchases
without paper bills and coins.
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Last 3 economic transactions you completed
using money?
1. _____________________________________
2. _____________________________________
3. _____________________________________
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What is Money?
Money is anything that
people commonly
accepted in exchange for
goods and services.
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What functions does money serve?
Medium of exchange
A standard of value
Store of value
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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
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Standard of Value
Provides people with a way to measure
the relative value of goods and services
by comparing their prices.
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Store of Value
It can be saved, or stored for later use.
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5 Characteristics of Money
Acceptability
Divisibility
Durability
Portability
Stability in Value
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Acceptability
People are willing to accept money in
exchange for their goods and services.
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Divisibility
Ability of money to be divided into smaller
units.
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Durability
Ability to be used over and over again,
and can withstand wear and tear.
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Portability
Ability to be
carried from one
place to another
and transferred
from one person to
another.
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Stability in value
Must be stable in value
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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.
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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
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Review
The Role of Money
Money can be anything that people accept as payment for
goods and services. It has three functions. 1. It is a medium
of exchange. Buying and selling with money, as opposed to
bartering for goods, is convenient and allows for flexible
and precise pricing. 2. It is a standard of value. Money
allows people to measure the relative worth of goods and
services and to compare prices. In the United States the
value of goods and services is expressed in terms of the
dollar, the country’s basic monetary unit. 3. It is a store of
value. Money holds its value over time so people don’t have
to spend it all at once but can save some for the future.
Inflation erodes the purchasing power of money.
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Closure Activity #24
Suppose that you and your classmates
decide to establish an original monetary
system for your school’s money. What will
you use as currency?
Draw the type of currency that you will use.
Explain why you chose that item, why it
functions as money, and how it matches
the characteristics of money.
10 mins.
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Show What You Know!
Georgia Milestone Practice Question
When people put money in a savings account, money is
serving as a
Store of value
Medium of exchange
Standard of value
All of the above
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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?
Durability
Portability
Divisibility
Acceptability
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Show What You Know!
Georgia Milestone Practice Question
What is the system of exchange that does NOT involve
money?
Haggling
Barter
Free exchange system
Debit exchange system
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The End
Any Questions?
Any Concerns?
Any Comments?
Any Questions?
Any Concerns?
Any Comments?
Any Questions?
Any Concerns?
Any Comments?
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Chapter 10 Money Test!
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
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