Money

1
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?

2
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.

3
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.

4
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.

5
Characteristics of Money

• Durable
• Easily divided
• Easy to carry
• Widely accepted
• Relatively scarce

6
1 Peso
7
5 Peso
8
10 Peso
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20 Peso
10
50 Peso
11
100 Peso
12
500 Peso
13
1000 Peso
14
2000 Peso