I will post a game and review this afternoon.
CHAPTER 13 NOTES
Dollar
Bill = Federal Reserve Note
Barter:
No money is exchanged, but instead exchanges services or items. Used throughout
the world
FUNCTIONS OF MONEY
1. Medium of Exchange
·
Sellers accept an item as payment for
goods and services
2. Standard of Value
·
Money provides people with a way of
measuring the relative value of goods and services
·
Everything in measured in dollars and
cents.
3. Store of Value
·
Money can be saved or stored for later
use.
o Must
be nonperishable
o Does
not deteriorate
o Must
maintain value overtime
o So
people can accumulate wealth for later use.
5 MAJOR CHARACTERISTICS OF MONEY
1. Durability
·
Money must last
·
Can be used over and over again
2. Portability
·
You must be able to carry it from place to
place
·
Size matters: You must be able to carry it
3. Divisibility
·
Ability to be divided into smaller amounts
·
We have to be able to make change
4. Stability in Value
·
Must maintain its value
·
Remains stable in price
5. Acceptability
·
All people are willing to accept it in
exchange for service and goods
SOURCES OF MONEY VALUES
1. Commodity Money
Money
that is also valuable by itself
Example:
Gold, Silver
2. Fiat Money
Worth
something only because the government says its worth something
It
has no value by itself
Example: United States Money
PAPER
MONEY MADE
Washington DC
COINS
MADE
D: Made in Denver
P: Pilladelphia
DEMAND
DEPOSIT
Money
you can get to on demand
Your
Checking Account, ATM Card
NEAR
MONEY
Money you have, but is
a hassle to get to
Time
Deposits
TYPES OF FINANCIAL INSTITUTIONS
COMMERCIAL
BANKS
·
Large Banks
·
Example: Regions Bank, Bank of America
MUTUAL
SAVINGS BANKS
·
Small Banks
·
Example: Bank of Bartlett, First Citizens
·
They like small accounts
CREDIT
UNIONS
·
Created for employees of a certain job
·
Example: Teachers Credit Union
SAVINGS
AND LOANS
·
BEFORE
o HOME
BUILDING SOCIETY: Designed for people to borrow money to build houses.
o They
could not go to a commercial bank.
·
NOW
o The
government deregulated them so now all banks can do everything like direct
deposit, etc.
AUTOMATION
ATM:
Automatic Teller Machine
·
Gives you immediate access to your bank
account and money
·
You must have your bank card and your PIN
(Personal Identification Number)
ACH:
Automated Clearing House
·
Every month when a bill is due, your bank
pays it for you.
POINT
OF SALE TRANSACTION
·
The money will be taken out of your
account the moment you do your transaction, ATM
·
The money is taken out of your account
right then
HOME
BANKING
·
Banking from your home, paying bills, etc.
·
Some have an app on your phone
EFT: Electronic Funds Transfer
· Money that transferred electronically
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