StoryofMoney.rtf - Name_Date “The Story of Money”...

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Name: ___________________________________Date:_____ “The Story of Money” Directions: Use the resources in this lesson to answer the questions. 1. What is barter and how does it work? Why is it inefficient for trade and exchange? Bartering is trading away something you own in order to get what you want. This could prove inefficient if you want something, but the seller doesn’t want anything you have to offer. One must find a coincidence of exchange. 2. Money serves as a medium of ______Exchange___ and a store of ___value_____. 3. State some examples of commodity money, specie, and fiat money. Commodity: Furs, fish, chisels, cows. Fiat: Dollars, euros, pesos. Specie: A bond, stock, or loan. 4. What characteristics should money have to work well? Divisibility, durability, portability, uniformity, limited supply, fungibility, and acceptability. 5. Why are banks able to lend money? Explain how the reserve requirement works.
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  • Spring '17
  • Sarah Wexler
  • Fractional-reserve banking

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