Money, Banking, and Financial Institutions

Grade 12 · Economics

Semester 1 | Period 3 | Week 13

Download the Lessonotes Mobile Liberia app for faster lesson access on Android and iPhone.

Get it on Google Play Get it on the Apple App Store

Subject: Economics

Semester: 1

Period: 3

Week: 13

School Name:

Teacher’s Name:

Subject: Economics

Grade Level: Grade 12

Week & Period: Week 13, Period III

Date:

Topic: Money, Banking and Financial Institutions
Sub-topic: Money – Definition, Origin, Characteristics, and Functions

Instructional Objectives

By the end of this lesson, learners should be able to:

  1. Define money and describe its origin.
  2. Identify and explain the characteristics of money.
  3. Discuss the various functions money performs in the economy.

 

Instructional Materials

  • Samples of different currencies
  • Chart showing historical forms of money (e.g., cowries, trade by barter)
  • Whiteboard and markers

 

Previous Knowledge

Learners have some understanding of trade, value, and the concept of buying and selling using currency.

 

A – Anticipation (Engagement/Warm-Up)

Motivational Set (5 minutes) Ask students:

“What do you use when you want to buy something at the market?” Listen to responses and introduce the topic of money by tracing how people used to trade before money existed.

 

B – Building Knowledge (Development)

Teacher’s Explanation (20 minutes)

Definition and Origin of Money:

  • Money is anything that is generally accepted as a medium of exchange.
  • In early history, people used barter—trading goods for other goods.
  • Problems with barter (e.g., double coincidence of wants) led to the development of money.
  • Early forms of money included shells, cowries, metal coins, and paper currency.

Characteristics of Money:

  1. Acceptability – It must be accepted by all.
  2. Durability – Must last long.
  3. Portability – Easy to carry.
  4. Divisibility – Can be divided into smaller units.
  5. Stability of value – Its value should not change quickly.
  6. Uniformity – All units must look the same.

Functions of Money:

  1. Medium of Exchange – Used to buy and sell goods/services.
  2. Unit of Account – Helps measure value.
  3. Store of Value – Can be saved and used later.
  4. Standard for Deferred Payment – Can be used to settle future payments (e.g., loans).

 

Class Activity (10 minutes)

Divide students into small groups. Each group is given a different type of historical money (illustrations or samples). They will identify its characteristics and whether it fits all six modern traits of money.

 

C – Consolidation (Wrap-Up and Evaluation)

Teacher Summary (3 minutes) Reinforce that money evolved to solve the challenges of barter and that it plays multiple roles in economic transactions.

 

Assessment (7 minutes)

Multiple Choice:

  1. One major problem of barter was: A. Easy transport
    Inflation
    C. Double coincidence of wants
    D. Price control
  2. Which of the following is NOT a characteristic of money? A. Durability
    Edibility
    C. Portability
    D. Divisibility

Short Answer: 3. Define money. 4. List any three characteristics of good money.

 

Assignment

In a paragraph, explain how the use of money is better than the barter system. Include two specific examples.

 

Teacher's Reflection (Questions Only)

  1. Did students understand the concept and evolution of money?
  2. Were they able to identify and apply the characteristics of money?
  3. Did the group activity reinforce the topic?
  4. Were learners engaged and responsive?
  5. Did this lesson meet all instructional objectives?