Money and Finance: Economics Crash Course #11

Available at https://youtu.be/Dugn51K_6WA or just youtube/google “Crash Course Economics 11”

1. What are the three main purposes of money?

2. Today, cash and coins are often used as money since

they’re easy to carry around, physically durable, and
___________________________________________.

3. __________________ is a virtual currency that is not issued or regulated by a specific

country. No bank is involved, so people can buy things more _____________________.
This appeals to people who don’t _____________ central banks and also people who
want to buy _______________ stuff online.

4. What makes the paper money is printed on so valuable?

5. _________________ are sometimes corporations with a bunch of cash, but they can also
be ordinary households. ___________________________ can be other households who
want to borrow money to buy stuff like a car or a house or can be businesses that have a
great idea for a new product but need ________________________ to make the product.
__________________________ sometimes need to borrow money because they’re
spending more than they’re bringing in.

a. The _____________________________________ is a network of institutions,

markets, and contracts that brings lenders and borrowers together.

b. What are the three ways this exchange can take place?

6. Stocks are known as ________________. If a company enjoys

high profits, __________________________ get more money.

a. Why aren’t fluctuations in the stock market

necessarily indicative of how the economy’s doing?

7. Financial markets, with instruments like stocks or bonds, allow borrowers to

crowdsource the money they need to borrow. They raise their capital from lots of
investors and ____________________________________________________________.