ECONOMICS CHAPTER 10MONEY AND THE FINANCIAL MARKET

Money for Nothing

Money 10A

Money 1 Chronicles 29:12 and Proverbs 30:8-9

pg 186 Money: is anything that a society

commonly uses and generally accepts in payment for goods and services. Thus anything can serve as money.

Legal Tender: U.S. Congress declares our currency to be legal tender, so that if you tender (or offer) it as payment for a debt, all creditors must accept it.

Money 10A

Functions of Money (pg187-188) Means of Payment Measure of Value Means of Storing Purchasing Power Bartering (inefficient) vs. using Money Desirable Characteristics of

Money Convenience and Portability Divisibility Durability Stability

Money 10A

Money Standards Commodity money Full-bodied coin Token coin Representative money Fiat money

Money 10A

Measuring the Money Supply

M-1 M-2 Creation of Money Fractional Reserve Banking

The Financial Market 10B

The Financial Market Financial Market Commercial Banks History of Banking in the United

States Dual Banking and Regulation Commercial bank and charter

The Financial Market 10B

Functions of Commercial Banks Other Financial Institutions:

Thrifts Savings and Loans (S&Ls) pg

199 the S&L Crisis Mutual Savings banks Credit Unions Contractual Savings Institutions

The Financial Market 10B

Finance Companies Investment Companies Personal Finance: Opening and

Maintaining a Transaction Account