PREVFinLit1 - IG (80p Protected Preview)

COPYRIGHTED MATERIAL

monetary policy

actions and decisions made by a central or reserve bank designed to maintain a healthy economy and commercial growth. medium of exchange recognized by the government of a country as national currency. value of the essence of a thing, such as the value of the metal within the coin. monetary system where a country's currency or paper money is backed by and redeemable in gold, and value tied to gold. currency that the government of a country has declared to be legal tender, not backed by a physical commodity. money held in a computer within the banking system and not in any physical form. QE; a reserve or central bank policy of increasing the money supply to stimulate the economy. VC; an electronically created peer-to-peer medium of exchange, unregulated by any government.

legal tender

intrinsic value gold standard

fiat money

electronic money quantitative easing

virtual currency

a popular virtual currency. PRODUCT PREVIEW

Bitcoin

electronic funds transfer

EFT; the electronic exchange and transfer of money from one account to another.

Lesson Objectives By the end of this lesson the student will be able to: 1. Trace the evolution of money. 2. Explain intrinsic value. 3. Summarize the gold standard. 4. Tell where money comes from. 5. Compare the risks and benefits of virtual currency. 6. Summarize the responsibilities of the Federal Reserve Bank.

SLIDE 4F

Gaining Attention Engage students in a discussion: In the last lesson you learned the three key functions of money. Who can recall them? 1. Money is a society’s commonly accepted medium of exchange . 2. Money has a standard numerical measurement for comparing the values of dissimilar objects. 3. Money enables store of value, so people can accumulate wealth . If you think about it, money is more of a concept than an actual thing. After all, how often do you actually hold physical money in your hands or pay for an item in cash? Can you guess what percentage of commercial transactions (buying and selling of goods or services) take place these days without any physical money changing hands? (Take guesses.) Stay for class and find out!

54

Lesson 4 | The Money Morph

Made with FlippingBook flipbook maker