Overview

In this lesson, students explore the nature of money, how monetary systems evolve, how different cultures value money and more.

Current currencies

Lesson plan information

Teacher guide

Objectives

• Students will demonstrate an understanding of the functions, forms, and history of money in several cultures.
• Students will chart currency exchange rates.

How to begin

1. Go to the article "Money" in the Encarta Reference Library 2005. Show the students the image of "Money from Around the World," and read the caption describing the concept of fiat money.
2. Have the students identify as many currencies as they can in the picture. Ask them what they think the different currencies might tell them about the cultures that created them. Since the paper money has little inherent worth, ask them what gives the money value. Tell the students that in this activity they will try to answer these questions.

Money from Around the World

Money Changer and His Wife

Resources and web links

• FXConverter - Currency Converter for 164 Currencies Web site.

Student activity

Description

In this activity, you will research the concept of money, examine currencies from several countries, and compare their current exchange rates.

Step 1: explore the nature of money

• Software: Microsoft Encarta
• What to do
  Research money, create a timeline, and gather related information.

1. For your report, think about these questions:

• What is money?
• Why was it invented?
• What forms can money take?
• Why does the value of money change?

2. Start Encarta and click Articles.
3. Read the first two sections of the article "Money," as well as related subjects, such as "Currency."
4. Create a dynamic timeline search using "money" as the keyword.
5. Use the Encarta World Atlas found in the Maps tool to select two countries, in addition to your own, as subjects for research on currencies. Review the description of "Currency and Banking," as well as the history of each country, and determine what each country's currency reflects about its culture.
6. Browse related entries, multimedia, and related Web sites suggested by the Encarta articles, such as http://www.oanda.com/converter/classic (to convert currencies).

Step 2: create your report

• Software: Microsoft Encarta
• What to do
  Gather your information and outline your report.

1. Gather information from all appropriate articles, sidebars, media features, and Web sources to answer the original four questions. (Suggestion: Use maps and other media from Encarta World Atlas, as well as related articles and Web sites to illustrate your findings.)
2. Use the Encarta Researcher in the Homework Center to help you organize your information and outline your report. Use the chart maker tool in the Homework Center to compare the exchange rate of the three currencies you studied.

Step 3: present your findings

• Software: Microsoft Encarta
• What to do
  Use the Encarta Researcher as your guide to preparing your report. Include any pictures, text, maps, or other items that help illustrate your findings.

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