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Money in the World Today. Katie Tierney. Money. Is defined as “a medium that can be exchanged for goods and services and is used as a measure of their values on the market” Can also be a means of payment and measure of value. Fun Facts about Money.
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Money in the World Today Katie Tierney
Money • Is defined as “a medium that can be exchanged for goods and services and is used as a measure of their values on the market” • Can also be a means of payment and measure of value
Fun Facts about Money • The US dollar is printed on a mixture of 75% cotton and 25% linen with a polyester security thread. • Half of the bills printed in one day are US One Dollar bills. • Average life span • 18 months = $1 • 9 years = $100 • Coin and paper money are only 8% of the money in the world.
History of Money-Bartering • Bartering • An early market system where goods and services were exchanged • The goods and services were used in place of money • Examples • Almonds, coconuts, tea, rice, salt, cattle, humans
History of Money-Bartering • Often superficially resembles a monetary system • Not very effective • Limited in scope and utility • Worth varies from person to person
History of Money-Coinage • Jáchymov • Production of first coins in 1519 • Influence on other countries • “Taler” Dollar, tallero, daalder, daler
History of Money-The Birth of the Dollar • Scotland & King James VI • American colonists • July 6th 1785—Congress • “the monetary unit of the United States of America be one dollar” • The Dollar vs. the Unit
History of Money-The First US Coins • Copper Coins • “Mind your own business” • Worth one cent • Sun above a sundial • “I fly” • Chain of 13 linked circles • “We are one” • Built upon previous traditions
History of Money-Paper Money • Chinese Economy • Controlled by State force • Simple tokens • Transition into drawing • Only would have occurred within a great empire
History of Money-Paper Money • Problems • Paper and printing had not been invented • Papyrus not strong enough • China • 1st paper made form bark of mulberry tree • Tang Dynasty • Mongol Empire
History of Money-Paper Money • Solved problem of massive weight of gold • Fixed to the amount of money backing the paper money • $100 million in gold = $100 million in paper money • Convenient and More Efficient
Money Today • In today’s world, money is more complex • International currency does not exist • Markets are internationally based • Organized through exchange rates in the Foreign Exchange Market
Exchange Rates • Fixed Rates • Fixed to the amount of gold/silver there is in the Treasury • Flexible Exchange • Based upon the law of supply and demand in the Foreign Exchange Market
Fixed Rates • Initially determined by the IMF • Value of US Dollar = $35 per ounce of gold • Value of British Pound = 12.5 pound per ounce of gold • Exchange rate set at $2.80 per pound • Lasted from 1948 until 1967
Flexible Exchange What is worth the Least? What is worth the Most?
Foreign Currency and Exchange Rates • Demonstration on how to determine Flexible Exchange Rates • Ratio of currencies • Activity
Counterfeit Money • How To Detect Counterfeit Money • Portrait • Real—appears lifelike and stands out distinctly from the background • Counterfeit—lifeless, flat, and details merge into the background which is often too dark or mottled • Border • Real—the fine lines in the border clear and unbroken • Counterfeit—lines in the outer margin and scrollwork may be blurred and indistinct
Counterfeit Money • Serial Numbers • Real—distinctive style, evenly spaced, printed in the same ink color as the Treasury Seal • Counterfeit—differ in color or shade of ink and numbers are not uniformly spaced or aligned • Paper • Real—has tiny red and blue fibers embedded within • Counterfeiters—printed tiny red and blue lines on the paper
Works Cited • A History of Money by Glyn Davies • Money-A History by Jonathan Williams • History of Money in Ancient Countries by Del Mar • The History of Money by Jack Weatherford • http://www.ustreas.gov
