Podcast
Questions and Answers
What are synonyms for 'money'?
What are synonyms for 'money'?
- Expense
- Income (correct)
- Wealth (correct)
- Profit (correct)
What is money?
What is money?
A medium of exchange that facilitates trade and can be used to purchase goods and services.
What was the first form of money?
What was the first form of money?
Coins of fixed weight and value minted in Turkey by Lydians.
What is paper money?
What is paper money?
What is commodity money?
What is commodity money?
What is representative money?
What is representative money?
What was the Gold Standard?
What was the Gold Standard?
The Gold Standard was modified or abandoned during _______________
The Gold Standard was modified or abandoned during _______________
What is a floating exchange rate?
What is a floating exchange rate?
Today, gold and silver are considered __________________ rather than forms of ______________.
Today, gold and silver are considered __________________ rather than forms of ______________.
What is electronic money (e-money)?
What is electronic money (e-money)?
What is EFT (Electronic Funds Transfer)?
What is EFT (Electronic Funds Transfer)?
Examples of EFT include:
Examples of EFT include:
What is NASDAQ?
What is NASDAQ?
How did people trade before money was developed?
How did people trade before money was developed?
Who is credited historically as the first people to use coins?
Who is credited historically as the first people to use coins?
What are greenbacks?
What are greenbacks?
When did paper currency appear in Europe?
When did paper currency appear in Europe?
Today, US currency is based on the Gold Standard.
Today, US currency is based on the Gold Standard.
Which describes the US Federal Reserve?
Which describes the US Federal Reserve?
In the United States, coins are minted by which agency?
In the United States, coins are minted by which agency?
In the United States, paper money is printed by which agency?
In the United States, paper money is printed by which agency?
What is unique about paper money in the United States?
What is unique about paper money in the United States?
How does U.S. currency get into circulation?
How does U.S. currency get into circulation?
Flashcards are hidden until you start studying
Study Notes
Money Fundamentals
- Synonyms for money include income, profit, and wealth.
- Money serves as a medium of exchange, allowing trade for goods and services, represented by currency in forms like coins and paper bills.
Historical Context
- The first form of money were coins minted by Lydians in Turkey, around 3,000 years ago, valued based on their metal content.
- Paper money emerged in China around 910 A.D. as a more convenient alternative to metal coins.
- Commodity money holds intrinsic value beyond its use as currency; for example, gold and silver in coins retain their own worth.
Forms of Money
- Representative money is linked to an underlying asset, such as gold or silver.
- The Gold Standard allowed currency conversion based on gold value; however, it was modified during the Great Depression.
- Today, gold and silver are considered valuable assets, not as direct forms of money.
Modern Monetary Systems
- The floating exchange rate adjusts currency value based on supply and demand factors, first implemented by President Nixon.
- Electronic money (e-money) or digital cash refers to money existing only in electronic form.
- Electronic Funds Transfer (EFT) enables automated monetary transfers without manual processes.
Practical Applications of EFT
- Examples include direct deposit paychecks, credit card transactions, ATM usage, store gift cards, and online payments.
Trading and Coinage
- Before the invention of money, trade operated on a barter system.
- Lydians are recognized as the earliest coin users.
- Greenbacks refer to the first U.S. paper money, appearing around the 17th century in Europe.
U.S. Currency Insights
- Current U.S. currency is not based on the Gold Standard.
- The U.S. Federal Reserve manages monetary policy, currency distribution, and banking processes.
- The United States Mint is responsible for coin production, while the Bureau of Engraving and Printing handles paper currency.
- Each U.S. bill has a unique serial number for identification purposes.
- Currency circulation involves the Fed mandating distribution, transitioning money from the Bureau to banks and ATMs.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
