Essential Question What are the different forms of

Essential Question: What are the different forms of money and credit? *pgs. 504 -509

§Currency- Coins and paper money § 3 common features: §Easy to carry §Durable §Have a standard form and considered legal by the gov. that issues it

§Two mints (plants where coins are made) in the U. S. §In Philadelphia, PA and Denver, CO §Paper money is printed in Washington, D. C.

§People are NOT required to accept checks as legal tender because they are not issued by the federal gov. §Intentionally writing checks for amounts of money you do not have in your bank account is a crime

§Like electronic checks

§Using credit means you can buy something now with the promise to pay for it later §Interest is a payment charged for borrowed money

§Charge cards are issued by stores § Can only be used in the store that issues them § The store lends the money to be paid back §Banks issue credit cards § Can be used almost anywhere § The credit card company lends the money to be paid back

§ Long-term Credit- loans payable over long periods § Used to make big purchases like cars, major appliances, homes § Short-term credit- loans that are repaid over a short period of time § Stores can repossess, or take back, purchases that have not been fully paid for

§Bankruptcy- legal declaration that a person or business cannot pay debts owed § A bankruptcy judge must excused the person from debt or allow them to pay a reduced amount § This can hurt your credit rating/score for years §Creditors- people who are owed money

*Do not write §How can a merchant arrange to buy goods if he or she does not have enough money to pay for them? §Why is credit important to the U. S. economy as a whole?