Economics: Today and Tomorrow © 2008

Chapter 14: Money and Banking

Chapter Overviews

Section 1: The Functions and Characteristics of Money
The concept of money, the usage of paper money in the United States, and the amount of money in circulation are probably ideas that most people take for granted. The three functions of money are: a medium of exchange, a unit of accounting, and a store of value. Furthermore, the chapter explores the six characteristics of money.

Section 2: History of American Money and Banking
Important events in the history of American money and banking have influenced the development of the nation's banking system. Technology is an enormous factor which impacts the banking system every day.

Section 3: Types of Money in the United States
The chapter explains the difference between money and near moneys. The money supply consists of not only bills and coins, but also checking and savings deposits and certain other liquid investments.