This is “Money”, chapter 3 from the book Finance, Banking, and Money (v. 2.0). For details on it (including licensing), click here.

For more information on the source of this book, or why it is available for free, please see the project's home page. You can browse or download additional books there. To download a .zip file containing this book to use offline, simply click here.

Has this book helped you? Consider passing it on:
Creative Commons supports free culture from music to education. Their licenses helped make this book available to you.
DonorsChoose.org helps people like you help teachers fund their classroom projects, from art supplies to books to calculators.

Chapter 3 Money

Chapter Objectives

By the end of this chapter, students should be able to:

  1. Define money.
  2. Describe the work or economic functions that money performs.
  3. Define barter and explain why it is economically inefficient.
  4. Explain why some forms of commodity money are better than others.
  5. Explain why representative, credit, and fiat money are supplanted commodity money.
  6. Define the money supply and explain how and why it is measured.