Fed bankFed bankthat issuedthat issued the bill the bill

[Chicago][Chicago]

Bills are crowded with numbers andletters that help the U.S. Treasury trackprinting errors & authenticate currency.Here’s what many of them mean:

Number corresponds to letter in Number corresponds to letter in circle indicating issuing Fed bank.circle indicating issuing Fed bank.First letter correspondsFirst letter corresponds

to issuing Fed bankto issuing Fed bank

Last letter tells how many Last letter tells how many times serial number has runtimes serial number has run

What could you substitute for a one dollar bill?

What gives currency

value?

What gives currency (money)

value is what goods and

services it can be exchanged for in

society

What is Money?Money

Anything people are willing to accept as payment for goods and services

Examples: seashells, beads, stones

Modern Examples: coins, paper

Three Uses of Money1. Medium of Exchange

Anything used to get (exchanged for) goods and services

Without money acquire g/s thru barter - direct exchange of one set of g/s for another

Three Uses of Money2. Measure of Value (Unit of Account)

Way to compare value of goods / services Value is expressed in terms of price

Example: US - dollar, Japan – yen

Currency Converter

Three Uses of Money3. Savings Method

Money holds value if you hold onto instead of spending it

Able to use later on - wks, mnths, yrs

Except: can decrease in value if inflationExample: 2008 buy iPod $100

2009 buy same iPod $110

What is Currency?Currency

Coins and paper bills used as money

Past: stones, gold, salt, cattle, teeth

Six Characteristics of Money

1. Durability Withstand wear

and tear Coins v. wheat

or olive oil

Six Characteristics of Money

2. Portability Easily carried Cattle v.

paper bills

Six Characteristics of Money

3. Divisibility Easily divided

into smaller units

$10, $5, $1, .25, .10, .05,

Cattle v. dollars and cents

Six Characteristics of Money

4. Uniformity Able to count

and measure accurately

Whale teeth v. pesos

Six Characteristics of Money

5. Limited Supply Must be in

limited supply Gov’t controls Yen v.

coconuts

Six Characteristics of Money

6. Acceptability Able to

exchange for g/s

Accepted in NJ and CA and ND

Dollars v. cowrie shells

Activity

• Complete Graphic Organizer

• 7 stations

• 4 minutes each

Do these meet the 6 characteristics of $?

Cowrie Shells

Whale Teeth

Cattle

Leather Strips

Sea Shells Wampum

Spade and Knife Money

Yap Island Stone Money

Spade and Knife money

http://www.calgarycoin.com/reference/china/china1.htm#heavy%20spade

Yap Island Stone Money

http://www.reefseekers.com/PIXPAGES/Stone_money.jpg

http://en.wikipedia.org/wiki/Yap

Cowrie Shell Money

http://www.anythinganywhere.com/commerce/relic/liberiacowri.htm

http://www.jefpat.org/Curators%20Choice%20Archive/2008%20Curators%20Choice/Jan08%20-%20Curators%20Choice%20-%20Modified%20Cowrie%20Shell.htm

Wampum

http://www.nativetech.org/wampum/wamphist.htm

Kissi Pennies

http://www.liberiapastandpresent.org/kissi.htm

Manillas

http://www.anythinganywhere.com/commerce/relic/manillas.htm

Katanga Crosses

http://www.joelscoins.com/katanga.htm

http://www.randafricanart.com/Katanga_cross.html

Mitako (Wire money)

http://www.randtribal.com/AH_currency_3.html

Assorted African Money

http://www.nmafa.si.edu/exhibits/site/raffia.htm

Security Features via US Dept of Treasury Website

• http://www.moneyfactory.gov/newmoney/

• http://www.moneyfactory.gov/newmoney/flash/interactivebill/50_InteractiveNote.html