If you think about it, money is more of a concept than an actual thing. After all, how often do you actually hold physical money in your hands or pay for an item in cash?
Money has evolved over time. Currency, in the form of shells, was used in China in about 1200 B.C. Shells were a common means of payment throughout the ancient world. Throughout history all sorts of things have been used as money including salt, cows, beads, even chocolate!
Let’s explore how money has morphed over time.
Lesson 4 topics
- The evolution of money
- The gold standard
- Fiat money
- Central banks
- The Fed and the money supply
- Bitcoin and virtual currency
- Exploring the Federal Reserve Bank
Lesson 4 objectives
- Trace the evolution of money
- Explain intrinsic value.
- Summarize the gold standard.
- Tell where money comes from.
- Compare the risks and benefits of virtual currency.
- Summarize the responsibilities of the Federal Reserve Bank.
Classroom Instructional Slides
Links to Lesson Highly Recommended Resources
Learning Markets – The Goals of the Federal Reserve (6:56 minute video)
The Essence of How Bitcoin Works (5:24 minute video)
AtlantaFed, Money: An Economist’s Perspective – Fiat Money (Part 3) (5:46 minute video)