Bell Work

Do you have a bank account? Is it a saving or a checking account?

Do your bell work on your packet. There is room on the last page.

NCSS and MDENCSS Standards:• 1 Culture• 6 Power, Authority, and Governance• 7 Production, Distribution, and Consumption

MDE Competencies:• 1• 2• 4• 5

Chapter 5 Banking and Money

Oak GroveEconomics

History Of The Banking System

During the American Revolution

Continental Bills

Not This One

Constitution

Levy Taxes

Coin Money

Federalist VS. Anti-Federalist

Federalist favored centralized banks

Anit-Federalist favored state chartered banks

Bank of the United States

4 Functions 1. To hold tax funds collected by the federal

government.

2.To assist the federal government in tax collection, borrowing, and interstate trade regulation

3.To issue representative money in the form of bank notes.

4.To ensure that state-chartered banks held sufficient gold resources to cover bank notes that they issued.

Say No To National Banks

What National Bank?

Mr. President we need you to renew the bank charter

National Bank?

http://www.youtube.com/watch?v=vYh7pato4uE

United States Note

Representative money during the Civil War.

Coinage Act 1873

The government no longer purchased silver and moved to the gold standard.

The Government Silver

Gold Standard

I pity the fool who wants silver.

Federal Reserve Act

Federal Reserve Note

Stock Market Boom

Stock prices were inflated and did not represent the worth of the company.

Stock Market Crash October 29, 1929

Bank Holiday

All banks were closed.

Federal Deposit Insurance Coporation

Created to provide insurance for customer deposits.

Lifted Bank Regulations

Bank Bailout

http://www.youtube.com/watch?v=fr8EaOKKCNs

Real Estate Bubble

BarteringIn a series of trades, Kyle MacDonald traded this red paper clip for other items

until he ended up owning a house.

http://www.youtube.com/watch?v=BE8b02EdZvw

Functions of Money

A medium of exchange.

A unit of account.

A store of value.

The functions of money is to not make it rain but is:

http://www.youtube.com/watch?v=yeTrIJphoSg

A Medium of Exchange

As a medium of exchange, money acts as an intermediary or link

Not this kind of medium but:

Unit of Account

The unit of the weights are measured in pounds or grams.

___

The unit of height are measured in feet or meters.

The unit of value is measured in money.

A Store of Value

Characteristics of Money

Durability

Portability

Divisibility

Uniformity

Limited Supply

Acceptability

http://www.youtube.com/watch?v=AQ5fWxF7LIA

Durability

Portability

Divisibility

Uniformity

Limited Supply

Acceptability

Types of Money Commodity

Representative

Fiat

Electronichttp://www.youtube.com/watch?v=mmBSkTtGqf4

Conclusion The National Bank in 1791 had 4 functions. The First National Bank and Second National Bank were

vetoed. The Coinage Act of 1873 put the U.S. on the gold standard. The Federal Reserve Act centralized banking but into

districts. A “run” on the bank happens when large number of people

withdraw money from the bank. The “Bank Holiday” closed all banks during the Great

Depression to allow the federal government to strengthen, reorganize, and reopen banks.

Questionable and illegal mortgage practice involved issuing mortgages to people who normally do not qualify for them. This caused many foreclosures on homes.

BibliographyFor pictures of old money and federal reserve notes refer too:http://www.coinnews.net/2010/12/16/exceptional-notes-headline-heritage-tampa-fun-currency-auction/

For the pictures of the cows refer to:http://newsletters.creativecow.net/newsletters/2007/10-17/index.html

For pictures of the stock market crash and New Deal related photos refer to:http://www.stock-market-crash.net/1929-crash/

For real estate bubble cartoon refer to:http://www.intoon.com/cartoons.cfm/id/1787

For maps refer too:http://www.tlnt.com/2012/11/29/federal-reserve-hiring-is-improving-but-skilled-labor-is-in-short-supply/

For Revolutionary, Federalist and Anti-Federalist refer to:http://meettommerkey.com/fiat-money/