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http://www.minneapolisfed.org/community_education/teacher/money.cfm To navigate: go to www.minneapolisfed.org click on Community and Education click on Teaching Aids click on Our Money Teaching Unit a. Briefly describe the history of money as presented in the article. What current forms of money does it leave out? In 2500 BC the Egyptians produced metal rings for use as money. By 700 BC, a group of seafaring people called the Lydians became the first in the Western world to make coins. The Chinese were the first to use paper money, beginning in the Tang Dynasty (618-907 A.D.). Representative money is tokens or pieces of paper that are not intrinsically valuable themselves, but can be exchanged for a specific commodity, such as gold or silver. In the late 1800s, the U.S. government issued gold and silver certificates The leave out is the fiat money. b. What are the functions of money? How well did different types of commodity money fulfill these functions? Fiat Money? Function of the money is Medium of Exchange, Standard of Value , store of value and standard of deferred payment. The commodity money is not a great medium of exchange, it showed a standard of value, but it cannot store value. Fiat money on the other hand is a great medium of exchange, easy to carry, and it is a standard showed by the Issuing institutes, it also have a store of value. Also it is a standard of deferred payment. 3.
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