Fiscal & Monetary Policy Activities for High School

Instructor: Tammy Galloway

Tammy teaches business courses at the post-secondary and secondary level and has a master's of business administration in finance.

Students may think that fiscal and monetary policy sounds difficult to understand. However, the following activities will help you introduce students to each economic policy and makes learning fun and competitive.

Fiscal & Monetary Policy Activities for High School

Students have heard the terms 'taxes,' 'interest rates,' and 'banks.' However, do they know how the terms are all related and which federal policies are responsible for each?

Fiscal policy outlines the government's approach to spending, borrowing, and taxation, while monetary policy focuses on the money supply, interest rates, and credit availability. The following activities introduces students to both policies and explores their impact on citizens.

Can Banks Run Out of Money?

Explain that banks must maintain a certain level of cash on hand for withdrawals and loans to ensure they do not run out of money. This requirement is called the reserve ratio. The reserve ratio fluctuates depending on several factors.

Ask students to discuss if the reserve ratio is higher or lower during the holiday seasons. Allow students to share their response then explain that the correct answer is higher since consumers make significant withdrawals and loans during this time. Now, explain that this activity simulates the reserve ratio.


  • Index cards
  • Pens/pencils
  • Container
  • Calculators or smart devices with calculator function

To unlock this lesson you must be a Member.
Create your account

Register to view this lesson

Are you a student or a teacher?

Unlock Your Education

See for yourself why 30 million people use

Become a member and start learning now.
Become a Member  Back
What teachers are saying about
Try it risk-free for 30 days

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it risk-free for 30 days!
Create an account