Lesson: Money Economics

In this lesson, we will learn how to identify different types, functions, and characteristics of money as well as the history of money.

Lesson Plan

Students will be able to

know the following disadvantages of bartering: requiring double coincidence of wants, lacking divisibility, and difficulty in storing value,
understand how money was developed and that it was developed to overcome the disadvantages of bartering,
know the characteristics of the following types of money: commodity money, coins, banknotes (paper money), and bank deposits (credit),
know different means of electronic payments, such as credit cards, debit cards, ATM cards, and stored-value cards, and understand how they are processed,
distinguish electronic money by the method of authentication: smart cards (hardware based) versus digital money (software based),
understand the essential functions of money: medium of exchange, unit of account, general purchasing power, and store of wealth,
understand acceptability as a characteristic of money.

Lesson Worksheet

Q1:

Which of the essential functions of money directly serves to divide the bartering process into buying and selling?

Q2:

Which of the following is a method of electronic payment that does not obligate the consumer to immediately pay for the purchased goods or services?

Q3:

Which of the following types of e-money allows customers to pay for transactions without the need to sign or carry proof of identity?