chapter 1 study guide.pdf - Matilde Eckford Currency public paper bills and coins($ Euros CAD*not synonymous with money(currency is a type of money

chapter 1 study guide.pdf - Matilde Eckford Currency public...

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Matilde Eckford Currency - public paper bills and coins ($, Euros, CAD) *not synonymous with money (currency is a type of money) Money - entities that are used to buy goods and services History of money Barter - no money involved, basically trading goods, no set standard for worth, need at least 2 people, costly and time consuming Commodity money - using objects that are considered to have value to buy goods Advantages and disadvantages to using metal Made into coins Durable Reasonably transported (if made into coins) Not easy to determine purity Costly to determine purity Edges can be shaved off and made into new coins Can be a pain to carry around if not coins Paper money (gold standard) - paper that said how much gold you own Nixon’s suspension of the gold standard Depleting sources Needed a good supply of gold and the amount found was growing slowly and erratically Kept needing to suspend conversing during wartimes anyways Fiat money - paper currency that is valuable because the government says it is valuable Purposes of money/what what makes money Medium of exchange - needs to be a way to ease the transfer of goods and services ($5 bill: relatively easy to carry/divide into smaller values)
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