UNIT 4 PART 1 FROM THE VIDEO

Types of Money
1. Commodity Money

-have some commodity money of goods that has other purposes that also functions as money

       *EXAMPLE: Back in the old times people use cows or any other animal as money

2. Represented Money

-that whatever you are using as currency represents a specific quantity of approach money

       *EXAMPLE: Gold or Silver

3. Fiat Monet: money that is not backed by precious metal, it is legal tender, it is money that must be accepted for transaction, and is backed by the government

       *EXAMPLE: because the government says it has value it has value. Like the government decides to make all socks worth one dollar, the sock is worth one dollar can use it to pay.    

 Functions of Money(things that actually money does)
1. Money is a Medium of Exchange

-When you buy something you give money