Trust in the Stamp: teacher key

Money, grade 8 edition, written for 8th grade. A stamp, a receipt and a promise can all make money work. Trace how coins, paper money and gold shaped what people trust when they pay.

Read the book. Print this page for the key.

Questions and answers

1. What did coin stamping do for the metal?
   • It gave the metal new value
   • It let people trust the stamp instead of re-weighing the lump each trade (answer)
   • It made the metal lighter
2. What was the problem with tobacco money?
   • It was too heavy to carry
   • It was never accepted
   • Sellers might hide poor leaves under the best ones (answer)
3. Who made the world's first government-issued paper money?
   • China's government in the 1020s (answer)
   • Massachusetts in 1690
   • The Federal Reserve in 1914
4. Why does a unit of account not set value?
   • The bank sets it
   • Costs of making a thing and people's desire for it set value (answer)
   • It is always a gold coin
5. What is true of U.S. currency today?
   • It can be swapped for gold on demand
   • It is printed by the Federal Reserve
   • It is fiat money, not tied to gold or any other asset (answer)
6. What was the biggest note ever printed?
   • A $100,000 Gold Certificate used between Federal Reserve Banks (answer)
   • A $1 million note
   • A $500 bill

Words

• croesids: early Lydian coins
• stater: Lydian coin
• fiat: unbacked money
• microprinting: tiny text
• commodity: valued good