Functions
Anything that serves as a medium of exchange, a unit of account, and store of value
What is money?
The number of characteristics of money?
What is six?
I am on the five-dollar bill?
Consists of objects that have value in an of themselves and can be used as money.
What is commodity money?
Anything used as money--Today we use coins and paper bills as money.
What is money?
Without money, people would acquire goods and services by direct exchange of one set of goods or services for another.
What is barter?
Allows you to use only as much of it as necessary for any exchange.
What is divisible?
On the $50 bill.
Who is Ulysses S. Grant?
Coins made of gold or silver.
What is specie?
An order or decree.
What is a fiat or fiat?
An economic phenomenon where two parties each hold an item that the other wants, so they exchange these items directly without any monetary medium. This type of exchange is the foundation of a bartering economy
What is coincidence of wants or what is double coincidence of wants?
The characteristic means that bills of the same denominations not only look exactly the same but also can basically buy the same or similar amount of goods and services.
What is uniformity?
United States two-dollar bill.
Who is Thomas Jefferson?
The early type of money took the form of paper receipts for gold or silver.
What is representative money?
This happens when there is oo much money in circulation.
What is inflation?
Means money keeps its value if you decide to hold on--or store--it instead of spending it.
What is store of value?
Able to withstand the physical wear and tear that comes with being used over and over again.
What is durable?
Who is Andrew Jackson?
Legal tender--has value because the government has decreed it is an acceptable means to pay debts.
What is fiat money?
Commonly referred to as "The FED."
What is the Federal Reserve System?
When money provides a means for comparing the value of goods and services.
What is Unit of account?
List the characteristics of money.
What is durable, portable, divisible, uniform, limited, and acceptable?
These two non presidents are on the front of US bills.
Who is Alexander Hamilton or Benjamin Franklin?
These words are printed on your Federal Reserve Notes that means it is valuable because our government say so.
What is "This note is legal tender for all debts, public and private?"
When bills become too worn and need to be replaced because they are dirty, torn, or otherwise damaged.
What is shredding?