Ch 63: CLEP Social Sciences and History: Money, Banking and Financial Markets

About This Chapter

The informative video lessons in this Money, Banking and Financial Markets chapter aim to teach you about financial topics. Utilize the lessons to expand your knowledge of stocks, money, bonds and other financial assets. You'll have opportunities to learn about bank lending processes as well as the impact of interest rates on the availability of loan funds. The lessons include multiple-choice quizzes to measure your knowledge of these topics.

CLEP Social Sciences & History: Money, Banking and Financial Markets - Chapter Summary and Learning Objectives

The video lessons in this Money, Banking and Financial Markets chapter are designed to teach you about the various ways in which people save, invest and borrow money. Learn the meanings of terms such as personal income, the demand curve for money and the supply curve for money. Explore the factors that affect the value of stocks. These lessons will teach you about:

  • Equilibrium in the money market
  • The differences between commodity money and representative money
  • The factors that affect a shift in the demand for money

Video Objective
Types of Financial Assets: Money, Stocks and Bonds Discuss the characteristics of different forms of money.
Money: Definition, Types, Functions and How It's Made Learn about the fractional reserve banking system and the four main functions of money.
Present and Future Value: Calculating the Time Value of Money Discover methods for determining money's current and future value.
The Money Market: Supply and Demand Differentiate between income, wealth, and money, and calculate the amount of money currently in circulation.
Fractional Reserve System: Required and Excess Reserves Learn about basic banking processes.
Money and Multiplier Effect: Formula and Reserve Ratio Define the money multiplier and discover how changes in the money supply are calculated.

6 Lessons in Chapter 63: CLEP Social Sciences and History: Money, Banking and Financial Markets
Test your knowledge with a 30-question chapter practice test
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.

Money: Definition, Types, Functions & How It's Made

2. Money: Definition, Types, Functions & How It's Made

Unfortunately for most of us, making money isn't as easy as we would like for it to be. This lesson explains the story of money, including how banks and the Federal Reserve make more whenever they want.

Present and Future Value: Calculating the Time Value of Money

3. Present and Future Value: Calculating the Time Value of Money

A central concept in business and finance is the time value of money. We will use easy to follow examples and calculate the present and future value of both sums of money and annuities.

The Money Market, Supply & Demand

4. The Money Market, Supply & Demand

So much of the economy hinges on money. But this medium of exchange is actually a good, just like butter or books. This lesson explains money as a good, as well as how economists describe money.

Fractional Reserve System: Required and Excess Reserves

5. 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.

Money and Multiplier Effect: Formula and Reserve Ratio

6. 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.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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Other Chapters

Other chapters within the CLEP Social Sciences and History: Study Guide & Test Prep course

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