What Are Money and Banks?

What Are Money and Banks? — page 1 — MONEY AND BANKS Whenever people pay for goods or Lue means how services they use some form of money much something In early times shells and beads were is worth or how used to pay or trade for things much something Money can be almost anything as long should cost as everyone agrees on its value One of the earliest forms of CE money was precious metal such VIS These wampum beads were made from shells and used as money by Native Americans of the Montauk

What Are Money and Banks? — page 2 — as gold or silver Paper money was created as a promise to pay in gold or silver without having to carry those metals around A bank is a business that borrows and lends money It borrows money from customers called depositors It lends money to other customers called borrowers Banks pay fees to depositors and collect fees from borrowers The fees are called interest Banks make a profit by collecting more interest than they pay out Modern banks do many other things as well LLLLLLLLLLANAVAL Most banks have branches where customers can go to ask about or receive

What Are Money and Banks? — page 3 — MAKING MONEY Money comes in two forms coins and paper Coins have been around longer than paper money They were invented before paper money and they have lasted longer because they are made of metal Banknotes paper money are printed on paper that has cotton and other fibers in it They also are mixed with other materials that make them strong so they do not tear or Common American coins are the quarter dime nickel and penny Each is less than a dollar and is measured in

What Are Money and Banks? — page 4 — ago Sheets of American dollar bills are shown rolling off the presses The bills are cut and released for public use fall apart easily That way banknotes stay active or in circulation longer The blank paper is pressed onto plates filled with ink This prints the words and pictures that appear on paper currency Coins are punched out of sheets of metal Because there is nothing on the metal at first the punched coins are called blanks Currency is the official money of a The blanks are heated washed and country It consists dried Then the designs and words of paper money and for each type of coin are printed on both sides of the blank

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