About This Chapter
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- Identify which concepts are covered on your money and financial institutions homework.
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- Watch fun videos, pausing and reviewing as needed.
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Topics from your homework you'll be able to complete:
- Definition and function of money
- Effects of bank lending on the economy
- Banking and technology
- Federal Reserve System
- Financial crises
- Fractional reserve system
- Money demand and interest rates
- Money market
- Money and the multiplier effect
- Open market operations
- Private investment and real investment rates
- Tools of the Central Bank
- U.S. banking system
- World Bank and international banking
1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. Private Investment and Real Interest Rates
When you borrow money, where does that money come from and why is it available? In this lesson, you'll learn about the market for loanable funds, where savers deposit money and entrepreneurs borrow money to finance private investment.
9. What is the Federal Reserve System?
Have you ever wondered why interest rates go up and down, seemingly at random? Of course you have! Discover what the Federal Reserve is, what its goals are and how those goals are achieved in this introductory lesson explaining the central bank of the United States.
10. Reserve Requirement, Open Market Operations and the Discount Rate
This lesson outlines the three main tools used by the central bank to conduct monetary policy, including open market operations, required reserves and the discount rate.
11. Open Market Operations & the Federal Reserve: Definition & Examples
This lesson explains the most frequently used monetary policy tool of the central bank, open market operations. Using examples, you'll go inside the formula of the money multiplier and see how the Federal Reserve effectively controls the interest rate of the economy.
12. Institutions of the U.S. Banking System
The United States banking system is diverse and consists of many different types of institutions. In this lesson, you'll learn about commercial banks, savings and loan associations, credit unions, and investment banks.
13. How the Government Protects Your Money During a Financial Crisis
In this lesson, you'll learn about some of the causes of the financial crisis of 2008 that brought us the Great Recession. You'll also learn what steps the federal government can take to help protect your money when the next financial crisis hits.
14. How Technology Makes Banking More Efficient
If you've ever heard the cliché 'banker's hours,' you know that banking traditionally has not been a fast and efficient process. In this lesson, you'll learn about how technology has improved the efficiency of banking for customers.
15. International Banking and Services
Business never stops in the global economy. Companies need banking services 24 hours a day on different continents. In this lesson, you'll learn about international banking, including services provided and types of banks.
16. The World Bank, IMF & Other International Banking Organizations
International banking and financial organizations exist to encourage economic and financial stability, help facilitate trade, and help with economic development. In this lesson, you'll learn about some of these important organizations.
17. Central Bank: Definition & Purpose
Learn who controls all the money in the United States. Find out what the main functions of a central bank are and how it impacts your ability to get a job, the interest you pay on your car loan, and more.
18. Commodity Money: Definition & Examples
Commodity money has been used for thousands of years. In this lesson, you'll learn about commodity money and related concepts. You'll also have a chance to reinforce your knowledge with a short quiz after the lesson.
19. Demand Deposit: Definition & Overview
Most people with bank accounts have demand deposits even if they don't know it. In this lesson, you'll learn what a demand deposit is and some related concepts. You'll also have a chance to take a short quiz after the lesson.
20. Discretionary Fiscal Policy: Definition & Examples
In this lesson, we will learn about discretionary fiscal policy. We will define the term and look at how budget and taxes effect it. The lesson will be concluded with a summary and a quiz.
21. Euro: Definition, Advantages & Disadvantages
The euro is a common currency used by many members of the European Union and other countries in Europe. Learn about the benefits and drawbacks of the euro's introduction and use.
22. European Monetary Union: Definition, History, Policy & Members
This lesson provides a brief overview of the European Monetary Union (EMU) and its role in the growth of the European Union. We'll learn how the EMU is involved in the European Union membership requirements and how it contributes to economic growth.
23. Federal Funds Rate: Definition & History
The Federal Funds Rate is one of a few important rates that banks use. In this lesson, you'll learn what the federal funds rate is and what it means to you.
24. Financial Intermediaries: Definition, Types, Role & Advantages
In this lesson, you'll understand the process of financial intermediation. We'll also discuss the players in the process, the types of financial intermediaries as well as the advantages of financial intermediation.
25. GATT: Definition, History, Purpose & Members
Many nations depend on international trade agreements, such as the General Agreement on Tariffs and Trade (GATT), to stimulate their economies. In this lesson, you'll learn about the history, purpose, and members of GATT.
26. Government Market: Definition & Overview
The single largest purchaser of goods and services in the United States is the federal government. In this lesson, you'll learn about the government market and the procurement procedures utilized. We'll also touch on the dispute process.
27. Government Overspending: Examples & Overview
Government overspending happens when federal, state, or local governments spend more money than they take in through tax. This type of overspending can lead to negative consequences for the government and its people.
28. Liquidity Trap: Definition & Graph
Loaning money to the government through investments can be profitable, but when it is not, it can pose a problem to the government's money supply. This lesson discusses the liquidity trap.
29. Loanable Funds: Definition & Theory
Just like most goods and services in a market economy, there is a market where buyers and sellers meet to lend and borrow money. In this lesson, you'll learn about loanable funds and the theory behind it. A short quiz follows.
30. Monetarism: Definition & Overview
Economists are like most people: they don't always agree on how things work or should work. Monetarism is one of several schools of thought in economics. In this lesson, you'll learn about monetarism and its policy approach. A short quiz follows.
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