1. EPF6 demonstrate knowledge of
the nation’s financial system

2.  Money makes it easier to trade, borrow,
save, invest, and compare the value of
goods and services.

4.  Money is anything widely accepted as
final payment for goods and services.

6. Money has six characteristics:
 durability
 portability
 divisibility
 uniformity
 limited supply
 acceptability

8.  Money acts as a medium of exchange,
making trade easier.
 Money encourages specialization by
decreasing the costs for exchange.
 Money acts as a store of value, making it
easier to save and invest.
 Money acts as a measure of value, making
it easier to compare the value of goods
and services.

10. Commodity money (e.g., gold coin) has
value in itself,
while fiat money (e.g., U.S. dollar) has
value because the government has
declared that it is acceptable for paying
debts.

12.  Thebasic money supply in the United
States is made up of:
• currency
• coins
• checking account deposits