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CLASS DATE
DATE

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Section 1: Guided Reading and Review
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A. As You Read
10

As you read Section 1, supply the requested information in the spaces provided.
CHAPTER

Describe the three uses of money.

1. A medium of exchange is anything that is to determine value during the exchange good and services.
2. A unit of account is a means for compering the values of goods and services.
3. A store of value is something that keeps it values if it is stored rather than used.

Define the six characteristics of money.

4. objects used as money must withstand physical wear and tear.
5. People need to be able to take money with them as they go about their business.
6. To be useful,money must be easily divided into smaller denominations,or units of values.
7. Any two units of money must be uniforme that is the same in terms of what they will buy.
8. Money must be available only in limited quantities.
9. Everyone must be able to exchange the money for goods and services.

B. Reviewing Key Terms

Match the definitions in Column I with the terms in Column II. Write the letter of the correct
answer in the blank provided.

Column I Column II
10. something that keeps its value if held Ans=store of value. a. barter
11. objects that have value because the holder can exchange them for b. store of value
something else of value Ans=commodity money
c. fiat money
12. money that has value because the government says it is acceptable
d. currency
for paying debts Ans=fiat money © Prentice-Hall, Inc.
e. money
13. anything that is used to determine value during the exchange of
goods and services Ans=Medium of exchange f. medium of exchange
14. exchange of one set of goods or services for another Ans=barter g. commodity money
15. coins and paper bills used as money Ans=Currency h. unit of account
16. way to compare the value of goods and services relative to each i. representative money
other Ans=unit of account
17. anything used as a medium of exchange, a unit of account, and a
store of value Ans=Money
18. objects that have value in themselves as well as for their use as money
Ans=representative money

2 Chapter 10 Section 1: Guided Reading and Review

a.barter= exchange of one set of services for another

b.store of value= something that keeps its value if held

c.fiat money= money that has value because the government says it is acceptable for paying debts

d.currency= coins and paper bills used as money

e.money= anything used as a medium of exchange, a unit of account, and a store of value
f.medium of exchange= is anything that is used to determine the value during the exchange
of goods and services
g.commodity money=objects that have value because the holder can exchange them for
something else of value
h.unit of account= way to compare the value of goods and services relative to each
other
i.representatie money=objects that have value in themselves as well as for their use as money