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In all economic systems people trade, or , goods

and services.
The simplest Iorm oI exchange was bartering.
:t in many parts oI the world people began to :se
diIIerent Iorms oI 24ney to help in their exchanges
But, what are probIems arise with bartering?
WYou need to have exactIy what other person wants.
WIt's hard to know what one thing is worth compared
to another.
WYou can't aIways save to trade at a Iater date.
SB, WHY BB WE ISE HBXEY?
. M4ney 2akes the exchange 41 g44/s an/ services
easier!
2. M4ney helps assign a value t4 things. We can 2easure
the w4rth 41 g44/s an/ services.
3. M4ney can be use1ul as a ~st4re 41 value. It will h4l/
its value 4ver ti2e...
HARAERISIS BF HBXEY
We want our money to be:
. povtub!e (easily carrie/ 1r42 place t4 place)
B. dIvIsIb!e t4 2ake large an/ s2all transacti4ns
C. Scuvce (24ney sh4ul/ be li2ite/ 4r it will l4se value)
D. uvub!e (2ust be able t4 stan/ up t4 har/ use)
What arc thc TYPE5 nf Mnncy?
. Commodity money
- money act:ally has val:e
-ex, gold and silver
2. Fiat money
-money that is assigned a val:e (by the government)
-c:rrency and coin Ior example
3. Representative money
-money that represents something
a. Personal Checks
b. Traveler`s Checks