Why did people stop using bartering?
Because it was hard to agree on values and not everyone wanted what others had
Why do you think coins used in the past were valuable?
Coins made of gold and silver were used in the past.
People used to trade rice for other goods.
Bartering
What is “legal tender”?
Money that must be accepted when paying for something.
Why coins were invented?
Cattle and tea were hard to carry and store.
What does alleviated mean?
To make something less intense, severe or difficult.
When were metal objects first used as money?
As early as 5,000 B.C.
Commodities like cattle and tea were used as money. What does this tell you about what people valued in the past?
They valued useful everyday items.
What are commodities?
Basic items used by almost everyone, like salt, tea, cattle, and seeds
When did government gave money official value?
The first U.S. paper money was made legal in 1862.
Why was paper money was created?
Coins made of precious metals were hard to find and expensive.
What does “exchange” mean?
To give something and get something in return.
A farmer trades eggs for bread. What kind of exchange is this?
Bartering.
People used to trade rice for other goods. What does this tell you about how people got what they needed before money?
They had to grow or make things to trade with others.
What does “fiat” mean in the phrase “fiat money”?
A Latin word meaning “let it be done”; money that has value because the government says so