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Money & Banking

Money & Banking

Assessment

Presentation

Social Studies

6th - 7th Grade

Medium

Created by

L Hodges

Used 209+ times

FREE Resource

7 Slides • 9 Questions

1

Money & Banking

Imagine what life would be like if money didn't exist. How would people get the goods that they needed? One way is to barter, or trade a good or service for a good or service provided by someone else.

​Trading like this is hard because two people who want to barter must at the same time want what the other has to offer. For ex, suppose you want to trade to t-shirts for a pair of jeans. One friend may have the jeans but not want your t-shirts.

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2

​What do the following things have in common: cattle, corn, salt, copper, gold, silver, seashells, stones, and whale teeth?

​At different times and different places, they have all been used as money. Money is anything that people will accept as a payment for goods and services.

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3

​Money performs three important functions. It serves as a medium of exchange, a store of value, and a unit of account.

​As we know, bartering is an inefficient way for people to meet economic needs. By contrast, money is an efficient medium of exchange, or means through which goods and services can be exchanged. It allows precise, flexible pricing of goods and services.

​A store of value is something that holds its value over time. People do not have to spend their money all at one time. They can spend it in the future. They know it will be accepted whenever they need to make purchases.

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4

Multiple Choice

Exchanging goods without involving money

1

Money order

2

Windfall

3

Debit card

4

Barter

5

Multiple Choice

Anything that's accepted in exchange for goods & services.

1

Currency

2

Money

3

Liquidity

4

Deferred Payment

6

Multiple Choice

Which of the following is a commonly accepted definition of money?

1

Any good which is commonly uiesd as a store of value

2

Any good which is exchanged foe gold at a fixed rate.

3

Any good which is acceptable to a bank

4

Any good which is commonly accepted as medium of exchange

7

Multiple Choice

Money or other substance generally accepted as payment for goods and services.

1

Measure of value

2

Medium of exchange

3

Scarcity

4

Store of Value

8

​Banks and the Economy

​When customers leave money in a bank, the bank pays the customer for the use of that money in the form of interest. The amount of interest paid is determined by the interest rate, which is usually a percentage of the total amount of money in the customer's account.

​The same thing occurs when a customer borrows money from a bank. You pay the money back with interest. (Additional money as a "thank you" for letting me borrow)

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9

​Money serves as a good unit of account, or yardstick of economic value in exchanges. It allows people to measure the relative costs of goods and services.

​For ex, a $20 t-shirt is worth 2 $10 gift cards, four $5 burritos, or ten $2 bus rides.

​In the United States, the economic value of all goods & services can be measured by the dollar.

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10

Multiple Choice

A student records her income and spending for past month, she uses this function of money

1

Medium of exchange

2

Standard of deferred payments

3

Unit of account

4

Store of value

11

Multiple Choice

Payment made for use of borrowed money

1

deposit

2

interest

3

principal

4

currency

12

​Money Management

​As we've learned, wanted are unlimited and the resources available to meet these wants are limited. For this reason, people and businesses are motivated to save and invest their money. Saving & investing increases their financial resources.

​Saving & investing is a good way to gain assets.

​An asset is something of economic value that a person or company owns.

​Examples: Houses, cars, building etc

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13

Savings is income not spent on immediate wants. People have many options for saving money. Common options include savings accounts. & stocks.

​Savings accounts are good when the one may be needed soon.

​Another option is investing in stocks. An investment is the use of money today in a way that earns future money or benefits.

​One way to invest is to buy stock or partial ownership in a company. Savers do this in the hopes that the stocks price will rise, then they can sell their stock and make a profit.

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14

Multiple Choice

Money saved in the bank generates .......... for the owners

1

deposit

2

interest

15

Multiple Choice

Savings is a way of putting money aside for .............

1

assisting the government

2

future use

16

Multiple Choice

Investments are

1

assets purchased with the goal of providing additional income from the asset itself

2

income received by property owners in the form of rent

3

the money you win or receive unexpectedly

4

taxes on people's earnings

Money & Banking

Imagine what life would be like if money didn't exist. How would people get the goods that they needed? One way is to barter, or trade a good or service for a good or service provided by someone else.

​Trading like this is hard because two people who want to barter must at the same time want what the other has to offer. For ex, suppose you want to trade to t-shirts for a pair of jeans. One friend may have the jeans but not want your t-shirts.

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