MONEY MONEY MONEY

DEATH TO PENNIES

http://www.youtube.com/watch?v=y5UT04p5f7U

History of Money: Timeline http://www.pbs.org/wgbh/nova/ancien

t/history-money.html Discussion1. What are some early types of

currency? 2. What was the most surprising about

the history of money?3. Which countries have influenced the

use of money?

US Currency The Anatomy of a Bill http://www.pbs.org/wgbh/nova/military/anatomy-bill.htmlDigital Cashhttp://www.pbs.org/wgbh/nova/moolah/digitalcash.html1. What are some security features of

the bills? 2. Is digital cash a benefit to the

economy? 3. What are the risks of digital cash?

SALT COWS GRAIN GOLD SHELLS/BEADS

DOLLAR

Portable

Lightweight  

Nonperishable  

Strong and durable         

Can get wet               

Exists in standard sizes    

Cannot be cheapened or thinned              Cannot be counterfeited              Supply is large enough              

Supply is limited enough              

Gold Bars in Fort Knox

Our Monetary SystemGold Standard v. Fiat Standard

GOLD FIAT (since 1971)

Dollar is equal to, and can be exchanged for, a specific amount of gold

Currency that a government has declared to be legal tender (acceptable payment for debts)

Paper money used in day to day life is exchangeable for gold on demand, if taken to a central bank. Gold is held in bank vaults.

Fiat money is based solely on faith – the willingness of others to accept it

Prevents government from printing too much money, protecting against inflation

The Federal Reserve (“The Fed”) controls the US money supply by buying and selling treasury bills, bonds and notes (securities)

Currency supply is limited by amount of gold held by government, which could limit economic growth

The President appoints the Chairman of the Federal Reserve and Board of Governors, with Senate approval

Gold Standard v. Fiat Standard Colbert – Gold v Fiat Debate http://www.youtube.com/watch?v=oN

IOGQveWmE&feature=related

YOUR ASSIGNMENT Research gold standard versus fiat

stand and type a one page editorial arguing for one system or the other. Use facts, economic data, and historic examples to justify your position. Include a works cited page and parenthetical citation as appropriate.

Due Wednesday, April 17 20 points