About This Chapter
Below is a sample breakdown of the Money, Banking and Financial Markets chapter into a 5-day school week. Based on the pace of your course, you may need to adapt the lesson plan to fit your needs.
|Day||Topics||Key Terms and Concepts Covered|
|Monday||Types of financial assets and present and future value||Ownership, monetary value, contractual claim, money, stock, time value of money, bonds|
|Tuesday||What money is and measuring the money supply||Exchange for goods and services, coincidence of wants, specialization, representative, commodity and fiat types; total quantity, M1, M2, M3|
|Wednesday||The functions of money||Standard of deferred payment, store of value, medium of exchange, unit of account|
|Thursday||The fractional reserve system, how money is made and the multiplier effect||Bank loans, fractional reserve banking system, goldsmiths, demand deposit, T-account, interest rates, multiplier effect|
|Friday||Money demand and interest rates and the money market||Wealth, personal income, transactions, precautionary, speculative and portfolio demand types, curve shifting factors, equilibrium|
1. Types of Financial Assets: Money, Stocks & Bonds
For an economy to operate effectively, consumers and businesses need a common medium of exchange and mechanisms to encourage some people to save, others to borrow and others to invest. In any modern economy, these needs are met with money, stocks and bonds.
2. Present and Future Value: Calculating the Time Value of Money
Because money can be invested at a given interest rate, it has a time value. Economists recognize that a dollar received today is worth more than a dollar received tomorrow. In this lesson, you'll learn the basics of finance that serve as the foundation for understanding how bonds respond to market interest rates.
3. Measuring the Money Supply: Explanation and Examples
Discover how the Federal Reserve defines the money supply by exploring the components of the money stock. In this lesson, we also look at the money supply in terms of function and liquidity.
4. What is Money? - Definition and Types
In this lesson, you'll learn what money is and its four basic functions. You'll also take a look at how it benefits society and explore the different types of money.
5. The Four Basic Functions of Money
This lesson uses real-world examples to describe the four basic functions that money serves in an economy. These basic functions help to create the foundation of the money system.
6. Fractional Reserve System: Required and Excess Reserves
This lesson provides an overview of basic banking concepts, illustrating how deposits turn into required reserves and excess reserves. It also covers how a bank accounts for these items on its balance sheet.
7. How Money Is Made: Understanding Bank Lending in the Economy
In this lesson, you'll learn how a single deposit in a local bank increases the money supply and filters through the economy with the help of the fractional reserve banking system.
8. Money and Multiplier Effect: Formula and Reserve Ratio
In this lesson, explore the concept of the multiplier effect and the money multiplier. Then, learn the formula for calculating changes in the money supply.
9. Money Demand and Interest Rates: Economics of Demand
Learn about the differences between money, wealth and income and explore the factors that determine the demand for money in an economy. Take a look at the demand curve for money as well.
10. The Money Market: Money Supply and Money Demand Curves
This lesson explores an economic model describing the supply and demand for money in a nation, referred to as the money market. It also describes the central bank's role in controlling the money supply, which impacts interest rates and the greater economy.
11. Money Multiplier: Definition & Formula
Banks actually create money by lending money. In this lesson, you'll learn about the money multiplier, including what it is, its formula, and how to use it. You'll also have a chance to take a short quiz after the lesson.
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Other chapters within the Macroeconomics Syllabus Resource & Lesson Plans course
- Scarcity & Production Possibilities Curve Lesson Plans
- Comparative Advantage & Specialization Lesson Plans
- Demand, Supply and Market Equilibrium Lesson Plans
- Measuring the Economy Lesson Plans
- Economic Growth and Productivity Lesson Plans
- Inflation Measurement and Adjustment Lesson Plans
- Understanding Unemployment Lesson Plans
- Aggregate Demand and Supply Lesson Plans
- Macroeconomic Equilibrium Lesson Plans
- Inflation and Unemployment Lesson Plans
- Central Bank and the Money Supply Lesson Plans
- Fiscal and Monetary Policies Lesson Plans
- Foreign Exchange and the Balance of Payments Lesson Plans
- Inflows, Outflows, and Restrictions Lesson Plans