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History of Money
<ul><li>In the beginning,  trading  or  bartering  was the way of life.  </li></ul><ul><li>Bartering  predates the use of ...
<ul><li>Money is any commodity that satisfies the following: </li></ul><ul><ul><li>Medium of exchange (item accepted for e...
<ul><li>Portability (easily transported) </li></ul><ul><li>Durability (lasts when handled) </li></ul><ul><li>Divisibility ...
<ul><li>Croesus, king of Lydia, created the first gold and silver coins in 561 B.C.  </li></ul><ul><li>Charlemagne standar...
<ul><li>Gunpowder, musket balls, corn, and hemp served s commodity money. It was used to settle debts and make purchases. ...
<ul><li>In Europe during the 1600’s, goldsmiths’s notes can be used as evidence of ability to pay. It mark the first use o...
<ul><li>A monetary standard where basic currency unit is equal to and exchanged for a specific amount of gold. </li></ul><...
<ul><li>The colony of Massachusetts was the first colony to issue paper currency in the US. </li></ul><ul><li>When George ...
<ul><li>Continental Congress chartered a national bank in 1781. </li></ul><ul><li>Second Bank of the US charted in 1816. <...
<ul><li>http://www.pbs.org/newshour/on2/money/history.html </li></ul><ul><li>http://library.thinkquest.org/28718/history.h...
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The History of Money

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History of money

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Transcript of "The History of Money"

  1. 1. History of Money
  2. 2. <ul><li>In the beginning, trading or bartering was the way of life. </li></ul><ul><li>Bartering predates the use of money. As a matter of fact, money derived from bartering. </li></ul><ul><li>Even today, individuals, governments, and institutions use bartering as a form of exchanging goods and services. </li></ul><ul><li>The use of livestock, shells, and beads were later used as money. </li></ul>
  3. 3. <ul><li>Money is any commodity that satisfies the following: </li></ul><ul><ul><li>Medium of exchange (item accepted for exchange) </li></ul></ul><ul><ul><li>Store of value (value stored over time) </li></ul></ul><ul><ul><li>Unit of Account ( common measure of goods/services ) </li></ul></ul>
  4. 4. <ul><li>Portability (easily transported) </li></ul><ul><li>Durability (lasts when handled) </li></ul><ul><li>Divisibility (divisible into smaller units) </li></ul><ul><li>Limited Availability ( available in limited supply. </li></ul>
  5. 5. <ul><li>Croesus, king of Lydia, created the first gold and silver coins in 561 B.C. </li></ul><ul><li>Charlemagne standardized Medieval coins when he conquered most of Europe in 800 A.D. </li></ul><ul><li>In 806 A.D., the Chinese started issuing paper currency, but it led to inflation. </li></ul>
  6. 6. <ul><li>Gunpowder, musket balls, corn, and hemp served s commodity money. It was used to settle debts and make purchases. </li></ul><ul><li>Some colonies established fiat monies such as wampum (shells used by Narragansett Native Americans). </li></ul>
  7. 7. <ul><li>In Europe during the 1600’s, goldsmiths’s notes can be used as evidence of ability to pay. It mark the first use of banknotes in England. </li></ul>
  8. 8. <ul><li>A monetary standard where basic currency unit is equal to and exchanged for a specific amount of gold. </li></ul><ul><li>Advantages: </li></ul><ul><ul><li>People feel secure about their money </li></ul></ul><ul><ul><li>Prevents government from printing too much paper currency </li></ul></ul><ul><ul><li>Disadvantages: </li></ul></ul><ul><ul><li>Gold stock don’t grow fast enough to support economy </li></ul></ul><ul><ul><li>Price of gold likely to change </li></ul></ul>
  9. 9. <ul><li>The colony of Massachusetts was the first colony to issue paper currency in the US. </li></ul><ul><li>When George Washington was president, the Spanish peso was used. He assigned Benjamin Franklin and Alexander Hamilton to establish a money supply for the new country. </li></ul><ul><li>During the Revolutionary War, congress issued “Continentals”. Due to oversupply, they were worthless. </li></ul>
  10. 10. <ul><li>Continental Congress chartered a national bank in 1781. </li></ul><ul><li>Second Bank of the US charted in 1816. </li></ul><ul><li>Design of U.S. currency made in 1863. </li></ul><ul><li>“ In God We Trust” first appeared on currency in 1955. </li></ul><ul><li>Dollar bills redesigned to make counterfeiting more difficult. </li></ul>
  11. 11. <ul><li>http://www.pbs.org/newshour/on2/money/history.html </li></ul><ul><li>http://library.thinkquest.org/28718/history.html </li></ul><ul><li>http://projects.exeter.ac.uk/RDavies/arian/llyfr.html </li></ul><ul><li>http://www.wdfi.org/ymm/kids/history/default.asp </li></ul>
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