Money Runs on Confidence: teacher key

Money, grade 9 edition, written for 9th grade. Gold once stood behind the dollar, and then it did not. See how the euro was launched, how bills are printed and why money works because people trust it.

Read the book. Print this page for the key.

Questions and answers

1. Why did "not worth a Continental" become a phrase?
   • The Continental coins were too heavy
   • The Continental Congress issued paper money that quickly lost its value (answer)
   • The bills were green
2. What ended in August 1971?
   • The Fed's power to print
   • The use of cash
   • The dollar's convertibility to gold (answer)
3. When did euro coins and notes begin?
   • January 1, 2002 (answer)
   • January 1, 1999
   • 1971
4. Why do people use fiat money?
   • Because it is made of gold
   • Because they trust governments and central banks will not wreck its purchasing power (answer)
   • Because it is the only choice at a mint
5. How does intaglio printing give a raised image?
   • Workers glue threads onto the bill
   • The paper is heated
   • Ink in the grooves of the plate is pressed onto paper under great pressure (answer)
6. Why do higher bills like the $100 last longer?
   • They change hands less often (answer)
   • They are made of gold
   • They are printed twice

Words

• intaglio: engraved printing
• fiat: unbacked money
• convertibility: ability to swap
• denomination: bill's face value
• inflation: rising prices