Money

Debit Card

Is a payment card which provides the cardholder electronic access to their bank account Deducts money from the cardholder's checking account to pay for the purchases Is safer than cash

Today

Technology has transformed the way Americans obtain financial services online banking, debit and credit cards and automatic teller machines are commonplace new technologies, such as mobile payment apps, smartphone credit card scanners and digital deposit apps

Currencies

Are a system of money in general use in a country Include many different forms, including coins paper money banknotes government bonds

treasury notes (T-Notes)

Are a type of government bond issued with shorter maturities than T-bonds Typically offered to investors with one-, five-, seven- or ten-year terms Interest rates are lower than those offered to T-bond investors

Government Bonds

Are forms of debt issued by a national government Are generally sold with a promise to pay periodic interest payments and repay the face value on the maturity date Are also called treasuries because they are sold by the Treasury Department

Treasury Bills

Are government bonds issued with terms of four, 13, 26 or 52 weeks Usually offer investors a discount rate

Government Bonds

Are offered in a variety of different lengths of time until maturity, ranging form three months to 30 years

Bank notes

Are promissory notes issued by a Federal Reserve Bank Are payable to the bearer on demand Are a form of currency or money which can be used as cash

Coins

Are the type of money made with metal, stamped and issued by the authority of government Are typically in a round and flat shape Are made with various types of medals

Treasury Bonds (T-Bonds)

Are types of treasuries which have the longest maturities of all government bonds

U,.S Coins

dime value: 10 cents obverse: President Franklin D. Roosevelt reverse: torch quarter value: 25 cents obverse: President George Washington reverse: eagle or emblem representing one of the 50 states

U.S Coins

half dollar value: 50 cents obverse: President John F. Kennedy reverse: eagle dollar coin value: 1 dollar obverse: Sacagawea a native American reverse: bald eagle

store of value

money can be saved and used in the future without rapidly losing its purchasing power

medium of exchange

money can be used to intermediate the exchange of goods and services

unit of account

money provides a common base of price, a standard monetary unit of measurement of value

U.S Coins

penny value: 1 cent obverse: President Abraham Lincoln reverse: Lincoln Memorial nickel value: 5 cents obverse: President Thomas Jefferson reverse: Monticello Jefferson's home

U.S paper Money

$1 bill obverse: President George Washington reverse: pyramid, eagle and the word "ONE" $2 bill obverse: President Thomas Jefferson reverse: Scene from the signing of the Declaration of Independence

U.S Paper Money

$5 bill obverse: President Abraham Lincoln reverse: Lincoln Memorial $10 bill obverse: Alexander Hamilton reverse: U.S. Treasury $20 bill obverse: President Andrew Jackson reverse: White House

U.S Paper Money

$50 bill obverse: President Ulysses S. Grant reverse: U.S. Capital $100 bill obverse: Benjamin Franklin reverse: Independence Hall

in 1816

Congress agreed to charter the Second Bank of the United States

in 1791

Congress established the First Bank of the United States, headquartered in Philadelphia, in order to further support the Revolutionary War

in 1863

Congress passed the National Currency Act the next year (1864) President Lincoln signed a revision of that law, the National Bank Act these laws established a new system of national banks and a new government agency headed by a Comptroller of the Currency, whose job was to organize and supervise the new banking system

1900

Congress passes the Gold Standard Act this Act made the gold dollar the official standard unit of currency the value of every dollar of paper money or coin was equal to the value of a gold dollar in 1900, it was equal to the value of 23.22 grains of pure gold coined into money

1933

Federal Deposit Insurance Corporation (FDIC) was created to protect deposits against bank failure this is a direct response to the Great Depression when over 10,000 banks failed

The Federal Reserve Bank

Has four main duties: conducting national monetary policy to ensure maximum employment, stable prices and moderate long-term interest rates supervising and regulating banking institutions to ensure safety of the U.S. banking and financial system and to protect consumers' credit rights

In 1775

In order to finance the Revolutionary War, the Continental Congress issued the new nation's first paper currency, known as "Continentals" however, because the currency notes were issued in a large quantity, it led to inflation the phrase "Not worth a Continental" came to mean "utterly worthless"

Money and banking System

In the United States have changed in many ways through the years in the early days of this nation, before and just after the American Revolution, Americans used British, Spanish and French currencies

Government Bonds

Include different types based on the maturity and amount of interest paid treasury bonds treasury bills treasury notes

cash

Is a form of legal tender which can be used to exchange goods, debt or services Refers to money in the physical form of currency Can be paper money, coins or banknotes Is the most widely accepted method of financial exchange

Credit Card

Is a payment card issued by a bank to cardholders as a method of payment Allows the cardholders to pay for goods and services based on the cardholder's promise to pay for them Grants a line of credit to the cardholder, from which the cardholder can borrow money for payment to a merchant or as a cash advance

Personal Check

Is a slip of paper which allows the user to make a payment from his or her bank account to a business or individual Requires the users to hold an account at a bank, credit union or investment firm Can be used to prove the payment and document the date

Paper Money

Is a type of money the government declares to be legal tender Is typically regulated by a country's central bank in order to keep the flow of money in line with monetary policy

the Federal Reserve bank

Is considered to be independent because its decisions do not have to be ratified by the president or any other government official

The Federal Reserve Bank

Is the current central bank of the United States Is often know simply as "the Fed" Has 12 regional locations in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas and San Francisco

Money Supply

Is the total amount of monetary assets available in a country's economy at a specific time Can include cash, coins and balances held in checking and saving accounts Can impact price level, inflation and the business cycle

Electronic Funds transfer

Is the wire transfer of money from one bank account to another Can happen within a single financial institution or across multiple institutions Can be done through computer-based systems and without the direct intervention of bank staff

Forms of Financial Exchange

Most commonly include: cash credit cards debit cards personal checks electronic funds transfers

1971

President Richard Nixon announced the U.S. would no longer covert dollars into gold the gold standard was completely replaced by fiat money

Money

Refers to something generally accepted as a medium of exchange, a measure of value or a means of payments

1913

The Federal Reserve Act was passed in response to the 1893 and 1907 financial panics Federal Reserve notes are authorized by the Federal Reserve Act and are the legal tender of the Unites States of America The Federal Reserve Bank was founded to provide the nation with a safe, flexible and stable monetary and financial system

1863

The National bank notes were produced and distributed by National banks chartered by the U.S. government National bank notes were the mainstay of the nation's money supply until Federal Reserve notes appeared in 1914

in 1863

The National bank notes were produced and distributed by National banks chartered by the U.S. government National bank notes were the mainstay of the nation's money supply until Federal Reserve notes appeared in 1914

1879

The U.S. adopted a gold standard in such a system, a standard mass of gold defines the value of a currency unit for instance, if the U.S. sets the price of gold at $500 an ounce, the value of a dollar bill would be 1/500 of an ounce of gold

1933

U.S. currency was no longer equal to or exchangeable for gold Roosevelt issued an executive order requiring all gold coins, bullion and certificates to be turned over to the Fed at $20.67 per ounce hoarding gold in coin or bullion is punishable by a fine of up to $10,000 and/or jail time

1836-1865

Was the nation's "free banking era" state-chartered banks and unchartered "free banks" took hold during this period, issuing their own notes by 1860 more than 10,000 different bank notes circulated throughout the country with minimum regulation, various bank notes were easily counterfeited, causing bank failures, confusion and circulation problems