Lesson+2--What+Is+Money_1_

Lesson+2--What+Is+Money_1_ - Lesson 2--What Is Money?...

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Unformatted text preview: Lesson 2--What Is Money? M&B Chapter 3 Barter Economy Work for Work Goods for Goods Goods for Work Work for Goods What Is Money? Money can be defined by its functions: Medium of Exchange Store of Value Unit of Account Standard of Deferred Payment Medium of Exchange Work for Money Goods for Money Money for Goods Unit of Account How Many Whoppers Do You Earn Per Hour? How Many Whoppers Does it Cost to Buy a Beer? Would Whoppers Serve As a Good Source of Money? Store of Value Money is a Time Machine allowing us to defer purchases from today to a future date. Would Whoppers be a good store of value? Money Should be Durable Standard of Deferred Payment The function that money serves when people buy something one day and pay for it later, repayment is denoted in terms of money Legal tender Things That Could Serve As Money Wampum American Indian Money Cigarettes Gold Silver Diamonds Other Gems or Precious Metals IOUs from a Trustworthy Institution More Important Characteristics of Money Portable Durable Scarce Not Easily Counterfeited or Manufactured Money Should Be Portable...
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Lesson+2--What+Is+Money_1_ - Lesson 2--What Is Money?...

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