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8/13/2019 ECON Money, Banking, Fed Notes
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You think you know what it is, right? Its that cold, hard cash in your,/01$2 that paper with presidents faces on it, those coins that say epluribus unum. But money is more than just that. 52#*4 is a medium ofexchange, which means its what is commonly accepted in exchange for+//(3 "*( 3$45)0$3- 6/*$7 "83/ 3$23 " 0/##/* 32"*("4( /9 5"8:$ "#/*+,$/,8$ )* " 0/:*247- ;"2 " (/88"4 )3? 4)+>2@A
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E)2> " 1/*1$,#; "1126#- ? 7/: ($,/3)2 7/:4 #/*$7 )*2/ 2>$ B"*1 =)2>2>$ $F,$02"2)/* 2>"2 7/: =)88 B$ ($,/3)2)*+ "*( =)2>(4"=)*+ #/*$7 94/#2>$ "00/:*2 /92$*- G/: +$2 ,",$4 1/*1$% 2>"2 8$2 7/: 24"*39$4 7/:4 #/*$72/ /2>$4 ,$/,8$- !/4#"887 7/: "83/ +$2 " ,8"32)0 +*$ 0"4( )* " 32/4$ /4entering the card number online. Its called a debit card because it ($B)23 ?/4 =)2>(4"=3? #/*$7 94/# 7/:4 "00/:*2- H$B)2 0"4(3 "83/ 8$2 7/: :3$ ID6#"0>)*$3 2/ =)2>(4"= #/*$7 94/# 7/:4 "00/:*2-
E)2> " %"=,#;% "1126#- ? 7/: ($,/3)2 7/:4 #/*$7 )*2/ 2>$ B"*1 =)2>the expectation that you will make limited withdrawals. (Theres a reasonwhy its called a savings account.) In fact, federal regulations limit thetype and number of withdrawals youre allowed to make each monthfrom a savings account. But theres a benefit: The bank actually pays you2/ 1$$, #/*$7 )* " 3"5)*+3 "00/:*2- D>$ $F24" #/*$7 7/: $"4* /* "savings account is very low, though, so dont expect to get rich that way.
J",$4 0>$013 "4$ :3$( 8$33 /92$**/= 2>"2 ,$/,8$ >"5$ ($B)2 0"4(3"*( ,"7 B)883 /*8)*$-
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P"5$ 7/: $5$4 24)$( 2/ )#"+)*$ " =/48( =)2>/:2 #/*$7@ Q)5$ )2 "247- R1"7? (/*$@ P/= ()( )2 +/@ $ 9"024$#")*3% D>$ =/48( 4:*3 /* #/*$7- E$ "88 :3$ )2 2/ ,"7 9/4 2>$2>)*+3 =$ *$$( "*( ="*2- N/ =>"2 )3 #/*$7? "*( =>$4$ (/$3 )20/#$ 94/#@ E>"2 4/8$ (/ B"*13 ,8"7@ I*( (/ 7/: 4$"887 *$$(money? Cant you just use credit instead? Its time to find out.
8/13/2019 ECON Money, Banking, Fed Notes
2/13
What is the difference between MONEY and CURRENCY?
Money is: ___________________________________________________________________
Currency is: _________________________________________________________________
How Much Money is there on Earth?http://youtu.be/w2tKg3E53DM
= ____________________________
= ____________________________
= ____________________________
= ____________________________
http://youtu.be/w2tKg3E53DMmailto:[email protected]8/13/2019 ECON Money, Banking, Fed Notes
3/13
Types of Money
Which type of money is the US Dollar? ___________________________________________
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Value is based on: Value is based on: Value is based on:
An example is: An example is: An example is:
Pros: Pros: Pros:
Cons: Cons Cons:
8/13/2019 ECON Money, Banking, Fed Notes
4/13
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8/13/2019 ECON Money, Banking, Fed Notes
7/13
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/"01$ 023 4"5 67"6 87")* 29 :2"*4 2* 67$ :"46 ,"+$ "*( 52*($;$( 725 "::that money could be created out of thin air. Maybe youre thinking, Buttheres nothing 1$7)*( that money. Just Marys $100! So why doesnt the572:$ 4046$# 2";( 29 N2A$;*2;4 2A$;4$$4 67$4$ 1"*?4- D$($;": '$4$;A$ >"*?4dont deal with the public. They are bankers banks.
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8/13/2019 ECON Money, Banking, Fed Notes
8/13
The Fed
FED = _______________ ________________ ________________.
It is the ___________________ _______________ of the United States of America. #Murkah
It is made up of __________________ district banks and is run by a _______________ ____
_________________________ who are appointed by the President and conrmed by the
______________.
The Fed has 5 major functions:
1. Regulate/Supervise/Communicate:
2. Loan money to regular banks:
3. Sell Government Securities (Investments):
4. Manage Currency:
5. Pay the Governments Bills:
8/13/2019 ECON Money, Banking, Fed Notes
9/13
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A loan always costs more than paying for something outright. Thatsbecause banks wont lend money for free. You have to pay back the"#/0*1 /2 13$ 4/"* ,405 )*1$6$51 - 7*1$6$51 8"* "(( 0, 1/ " 4/1 /2 #/*$9/:$6 1)#$- ;/#$1)#$5 ,$/,4$ 1")44 #"3"1 13$9 "6$ =09)*+ 13"*13$9 >)44 ,"9 )* )*1$6$51 /* 13$ 4/"*- 7* 13"1 8"5$? 13$ =/66/>$6 5$$5 13$4/"* "5 "* ,#9*%-3*#- #/*$9 5,$*1 )* /6($6 1/ #")13 " 4/"*- I$3)84$5 ($86$"5$ )* :"40$ :$69 J0)8)13a loan almost always means youre paying more than the car is worth. Butmost people dont have any choice. Vacations are an example of the otherextreme. Once a vacation is over, all thats left is a memory. There are lotsof great reasons to take a vacation, but if youve paid for it with a loan, you8/04( $*( 0, ,"9)*+ 13$ =)44 "*( 13$ )*1$6$51 2/6 " 4/*+ 1)#$-
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8/13/2019 ECON Money, Banking, Fed Notes
12/13
8/13/2019 ECON Money, Banking, Fed Notes
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