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Chart it! The Morph of the Mediums Barter served as the medium of exchange for a long time. The inefficiencies of barter led to money. Money has evolved over time. It began as commodity money , evolved to metal coinage, then to paper backed by precious metal. Money is now backed fiat , which is a government decree that it has value. Money has further evolved into electronic entries in bytes, moved around via EFT’s (electronic funds transfers). Compare the functions and characteristics of each of the listed mediums of exchange to see how they are alike, and how they are different.

Precious Metal Coinage

Modern Metal Coin & Paper

Feature or Characteristic

Commodity Money

Electronic Funds

Barter

VC

PRODUCT PREVIEW

peer-to-peer trade intrinsic value fiat legal tender issued by central or reserve bank Government regulated exists in bytes stability of value

divisible into smaller units transportable

(poss.) (poss.)

durable

storage of value standard numerical measurement cryptocurrency stateless mined

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THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY

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