Transcript Slide 1
Money Honey Illustrations of media of exchange (Chapter 11) QCC Standard 12 Economic Exchange Uses a historical perspective to explain how economic transactions have been & are facilitated, by using barter, money, credit cards, ATM machines, electronic transfers, etc. Money is PLADD • • • • portable limited availability durable divisible functions of money (your mm’s) • medium of exchange • measure of value • store of value Look up these terms! • • • • • • • commodity money fiat money (think Stone Cold) specie currency legal tender monetary standard gold standard inconvertible fiat money standard The world’s biggest currency • Stone discs of Yap: 6-8 ft. in diameter • A store of value, neither portable nor divisible, but accepted wampum Used as currency in colonial Connecticut Wampum was made from whelk shells. The black ones were the most valuable— until counterfeits (dyed shells) appeared on the market! Spanish divisible gold coin You’d need a scale to fix its value! pieces of eight The “Spanish dollar” The Maria Theresia Taler (Thaler) First issued in 1740, new coins were struck until the year 2000. The later coins are all dated 1780. The thaler is still used as specie currency in the Middle East. See Mrs. Wehner’s pendant. The Continental Backed by nothing; it caused tremendous inflation, Shays’s Rebellion, and, eventually, the U.S. Constitution! alternate currency of the 1800s People trusted in their local private & state banks. Delaware Bridge company the “greenback dollar” Printed to raise funds for Lincoln’s war effort, it was also backed by nothing & trusted by very few. demand note Backed by silver, it replaced the greenback. Confederate money Silver certificate 1882 gold certificate 1890 treasury note $2 I don’t know who the ladies are, or what they represent, but I like them! Gold certificate FDR called all of these back in 1933 modern silver certificate 1928 this one took the metal out of our money Mr. Inconvertible Fiat Money of 1934 (driving a convertible) more on FDR The price of gold was fixed at $35 an ounce, and U.S. citizens were not permitted to own gold bullion Bretton Woods Accord, 1944 All currencies were pegged to the U.S. dollar, and only governments could convert dollars to gold Canadian ForeignMinister Lester B. Pearson signs the accord. this President took us off the gold exchange standard in 1971 Now the dollar floats with all the other currencies And now our gold is safe. The Inflation Dollar Money of the future? How might new private currency run into problems with state & federal authorities?