Money in the World TodayKatie 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

Euro Dollar Yen

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

Foreign Exchange MarketEuro US Dollar Rate of

Exchange € : $Rate of Exchange $ : €

Start 200 400

Foreign Exchange MarketEuro US Dollar Rate of

Exchange € : $Rate of Exchange $ : €

Start 200 400 €1 : $2

Foreign Exchange MarketEuro US Dollar Rate of

Exchange € : $Rate of Exchange $ : €

Start 200 400 €1 : $2 $1 : €2

Foreign Exchange MarketEuro US Dollar Rate of

Exchange € : $Rate of Exchange $ : €

Start 200 400 €1 : $2 $1 : €2Round 1 100 600

Foreign Exchange MarketEuro US Dollar Rate of

Exchange € : $Rate of Exchange $ : €

Start 200 400 €1 : $2 $1 : €2Round 1 100 600 €1 : $6

Foreign Exchange MarketEuro US Dollar Rate of

Exchange € : $Rate of Exchange $ : €

Start 200 400 €1 : $2 $1 : €2Round 1 100 600 €1 : $6 $6 : €1

Foreign Exchange MarketEuro US Dollar Rate of

Exchange € : $Rate of Exchange $ : €

Start 200 400 €1 : $2 $1 : €2Round 1 100 600 €1 : $6 $6 : €1Round 2 120 480

Foreign Exchange MarketEuro US Dollar Rate of

Exchange € : $Rate of Exchange $ : €

Start 200 400 €1 : $2 $1 : €2Round 1 100 600 €1 : $6 $6 : €1Round 2 120 480 €1 : $4

Foreign Exchange MarketEuro US Dollar Rate of

Exchange € : $Rate of Exchange $ : €

Start 200 400 €1 : $2 $1 : €2Round 1 100 600 €1 : $6 $6 : €1Round 2 120 480 €1 : $4 $4 : €1

Foreign Exchange MarketEuro US Dollar Rate of

Exchange € : $Rate of Exchange $ : €

Start 200 400 €1 : $2 $1 : €2Round 1 100 600 €1 : $6 $6 : €1Round 2 120 480 €1 : $4 $4 : €1 Round 3 80 640

Foreign Exchange MarketEuro US Dollar Rate of

Exchange € : $Rate of Exchange $ : €

Start 200 400 €1 : $2 $1 : €2Round 1 100 600 €1 : $6 $6 : €1Round 2 120 480 €1 : $4 $4 : €1 Round 3 80 640 €1 : $8

Foreign Exchange MarketEuro US Dollar Rate of

Exchange € : $Rate of Exchange $ : €

Start 200 400 €1 : $2 $1 : €2Round 1 100 600 €1 : $6 $6 : €1Round 2 120 480 €1 : $4 $4 : €1 Round 3 80 640 €1 : $8 $8 : €1

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