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two dollars and 98 cent
how much money it will take to buy a gallon of paint
it's Friday morning in Tom havens is buy the paint
after school today to make the purchase his father give them a five dollar bill
a crisp new five-dollar bill but he received at the bank yesterday
this particular piece of money is just starting in circulation
what will happen to it what will it be used for
what can money be used for is money anyway
after school the five-dollar bill goes to a hardware store
where Tom use it to buy the paint this is one of the most common ways in which
we all use money
as a medium of exchange for goods Tom exchanges a certain amount of money for
a gallon of paint
the court naturally except for money and he gives Tom smaller amount of money
in Change and so the five-dollar bill has found its way into this cash
register
but it doesn't stay long its crew used to pay mister Kelly
and electric work he has just done in the store the store is not paying for wire
or fixtures special services this is another use for money
as a medium of exchange for services as well as for good
the five-dollar bill is moving fast that's because it's so convenient to use
in business transactions
in fact it's hard to imagine doing business without money
yet for thousands of years people didn't get along without money
in primitive days living with simple and each family produced whatever it needed
the first kind of business with Parker
a good stone cutter for instance might make a few extra tools and simply trade
them for farmers in
other things he wanted it was easy there was no need for money
even today Parker has its place
not long ago Tom havens got a spotlight for his bike
by trading a catcher's mitt for swapping like this works well between friends
but what would you trade in a hardware store
for a gallon of paint and how would the store owner get the paint and the other
goods they sells
what could he trade with all the people who had a hand in transporting the goods
to his store
what could he possibly swap with all stockholders have the hundreds of
factories that produce the goods
how could he barker with every individual workmen who played a part in
the manufacture each article no live today is too complex
people are too dependent upon each other jobs are two highly specialized for us
to do business by barker
that's why we depend on money as a quick and easy medium of exchange
but instead of doing a certain amount of electrical work in exchange for gasoline
mister Kelly pays for the gas with yes the same five-dollar bill he received at
the hardware store
this convenience a modern money has evolved
from age-old search for a satisfactory medium of exchange
are the simple Barbara primitive people spearheads became one of the first
articles used as money
shells have also served as money wampum was used by the American Indians
and hundreds of other articles have been money to various people
at various times but none of these met all the requirements
of good money money should be something of value
yet who go to Huntsman has any use for spearheads
the value should be obvious and uniform who but an expert knows what this
for belt is worth
money should be easy to carry about metal rod certainly on
money should be divisible how do you make change when the prize
is half of cow money should be durable too much salt money
that got caught in the rain out of such trying experiences
gold and silver emerged as the most durable
most convenient most satisfactory money
for greater convenience man started snapping up gold and silver coins
with values imprinted on later governments took over the exclusive
function the coining money because unscrupulous man began the covered cheap metal disks
with gold and silver plating sold today in the United States
any money is calmer fit and sold worthless
unless issued by the federal government and anyone who knowingly prize to spend
calmer fit money
maybe find a larger amount and sent to jail
the coins we use are made in one of the three mint in the United States Treasury
located in San Francisco Denver and Philadelphia
and from the Bureau of Engraving and Printing in washington comes up our paper money
including of course
the five-dollar bill this story
this represents the final stage in the evolution of modern money
for a while metal coins are handy for dealing in small amounts of money
when transactions require larger amounts paper money is far more practical
a five dollar bill for example is much easier to handle than say
five dollars and dimes than just imagine buying something that costs a hundred dollars
and paying for it with 10,000 cents
so the values have of the money we use everyday are the values fixed by the government
the paper bills and even the coins are not in themselves
actually worth the amounts they represent their face value is however
are guaranteed
not only by a huge reserves of gold and silver
but by the stability of the government which fix those values
as long as people remain confident that our government is strong and secure
they will continue freely to accept and spend its money
without questioning the value as they have done with our
five-dollar bills which is now about to move again
because missus More has come in to cash a check
a check is not money it is one kind substitute for money
its value is guaranteed not by the government but by the person who signs it
since the man of the filling station knows missus More
he is willing to take her word that she has enough money in the bank to make the
checkbook
So he cash is it for
Saturday morning finds the five-dollar bill still in missus Moors burghers
how will she uses good morning may I help you
yes can you tell me the price of look in window
yes that pair is 75 and most atractive
I'm afraid that more than I care to spend
do you have a cheaper pair i do have one pair left with an exceptional value
it's really it was 6.50 both done sale it
just five dollars
I'm take them please
a very good looking and he went by five dollars
worth five dollars yes since the value of my money is fixed by the government
we use it as a standard for measuring other values
so money is not only a medium of exchange but also
a standard a value at one o'clock Saturday afternoon the five-dollar bill
is transferred from the cash register in the gift shop
to the pay envelope in Virginia height the clerk who sold missus More the balkans
and when this hype goes to spend the bill she learned how money serves still
another purpose hallow you want make another payment on the radio
well yes but I think the price has gone up since I bought it
don't worry about that you have to pay only the original price of thirty dollars
well I'm glad at that your balance is just fifteen dollars
I would for sure the price but I bought it with only thirty dollars
so we see how money serves as a standard for future payments
a yardstick by which we measure the value anything bought or sold
to be paid for in the future but what about the five-dollar bill
soon its adventures take a strange turns
this radio shoppers were Tom havens works after school and on Saturdays
when he's finished his work for the week he gets
up five dollar bill as we've seen it could be the same five-dollar bill his
father gave him to buy the paint and where did his father get it
from the bank and it's going back there
Tom deposits the five-dollar bill in his savings account
he deposits his money every week storing it up for his future needs
this way he's using money as a storehouse of value
just the five-dollar bill is completed one round-trip
from the bank and bank
Tom first use that as a medium of exchange for goods
mister Kelly received it as a medium of exchange for services
it was convenient for him to carry around the news for any business
transactions
and no one ever question that it was worth five dollars because its value has
been fixed and guaranteed by the government
when missus More made for purchase
she use money as a standard the value
and miss Height found that money is also a standard a future payments
when the bill returns toTom he used it as a storehouse of values
now it's back in the bank but it will pass through many many more hands
before it is worn out and withdrawn from circulation
it may even go along with some world traveler
who will soon exchange it for a equal value of money for some
other nations for modern money convenient to use
easy to recognize and universally accepted for the value picks by a stable government
it is money which makes possible are complex
International Society a business trade
and travel