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Ch 11: Money, Banking and Financial Markets Lesson Plans

About This Chapter

The Money, Banking and Financial Markets chapter of this course is designed to help you plan and teach a wide range of issues pertaining to money that include function and supply in your classroom. The video lessons, quizzes and transcripts can easily be adapted to provide your lesson plans with engaging and dynamic educational content. Make planning your course easier by using our syllabus as a guide.

Weekly Syllabus

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

11 Lessons in Chapter 11: Money, Banking and Financial Markets Lesson Plans
Types of Financial Assets: Money, Stocks & Bonds

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.

Present and Future Value: Calculating the Time Value of Money

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.

Measuring the Money Supply: Explanation and Examples

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.

What is Money? - Definition and Types

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.

The Four Basic Functions 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.

Fractional Reserve System: Required and Excess Reserves

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.

How Money Is Made: Understanding Bank Lending in the Economy

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.

Money and Multiplier Effect: Formula and Reserve Ratio

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.

Money Demand and Interest Rates: Economics of Demand

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.

The Money Market: Money Supply and Money Demand Curves

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.

Money Multiplier: Definition & Formula

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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