Money

• What is it?• Why do we have it?• What do we do with it?• How does it help our economy?• Does it grow on trees?• How does it differ from country to country?• What can you learn from examining

currencies?

Money

• Money is anything widely accepted as final payment for goods and services.

• Money makes trading easier by replacing barter with transactions involving currency, coins, or checks.

• People consume goods and services, not money; money is useful primarily because it can be used to buy goods and services.

Money

• Producers use natural resources, human resources, and capital goods, (not money) to make goods and services.

• Most countries create their own currency for use as money.

• Money encourages specialization by decreasing the costs for exchange.

Functions of Money

• Money serves as a medium of exchange by making trading easier. It replaces barter with transactions involving currency, coins, or checks.

• As a store of value, money makes it easier for people to save and defer consumption until the future.

• As a unit of account or measure, money is used to compare the market value of different goods and services.

Characteristics of Money

• Durable

• Easily divided

• Easy to carry

• Widely accepted

• Relatively scarce

1 Peso Front

1 Peso

1 Peso Back

5 Peso

5 Peso Front 6

9

5 Peso Back 69

5 P

eso

Fro

nt

5 Peso Back

10 New Peso 96 Front

10 New Peso 96 Back

10 Peso

10 Peso Front

10 Peso Back

10 Peso Front 69

10 Peso Back 69

20 Peso

Front

Back

Back 2

Back of Peso

Front of Peso

50 Peso

50 Peso 98 Back

50 Peso 98 Front

50 Peso B Front

50 Peso B Back

50

Peso

Front

197350 Peso Back 63

100 Peso

100 New Peso 92

100 New Peso 92 Back

100 Peso Back100 Peso Front

100 Peso Back 78

100 Peso Front 78

500 Peso

500 Peso Back

500 Peso Front

1000 Peso

1000 Peso Back

1000 Peso Front

2000 Peso

2000 Peso Back 84

2000 Peso Front 84