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Ch 11: Money, Banking, and Financial Markets: Help and Review

About This Chapter

The Money, Banking and Financial Markets chapter of this College-Level Principles of Macroeconomics Help and Review course is the simplest way to master money, banking and financial markets. This chapter uses simple and fun videos that are about five minutes long, plus lesson quizzes and a chapter exam to ensure students learn the essentials of money, banking and financial markets.

Who's it for?

Anyone who needs help learning or mastering college macroeconomics material will benefit from taking this course. There is no faster or easier way to learn college macroeconomics. Among those who would benefit are:

  • Students who have fallen behind in understanding types of financial assets or working with present and future value
  • Students who struggle with learning disabilities or learning differences, including autism and ADHD
  • Students who prefer multiple ways of learning economics (visual or auditory)
  • Students who have missed class time and need to catch up
  • Students who need an efficient way to learn about money, banking and financial markets
  • Students who struggle to understand their teachers
  • Students who attend schools without extra economics learning resources

How it works:

  • Find videos in our course that cover what you need to learn or review.
  • Press play and watch the video lesson.
  • Refer to the video transcripts to reinforce your learning.
  • Test your understanding of each lesson with short quizzes.
  • Verify you're ready by completing the Money, Banking and Financial Markets chapter exam.

Why it works:

  • Study Efficiently: Skip what you know, review what you don't.
  • Retain What You Learn: Engaging animations and real-life examples make topics easy to grasp.
  • Be Ready on Test Day: Use the Money, Banking and Financial Markets chapter exam to be prepared.
  • Get Extra Support: Ask our subject-matter experts any money, banking and financial markets question. They're here to help!
  • Study With Flexibility: Watch videos on any web-ready device.

Students will review:

This chapter helps students review the concepts in a Money, Banking and Financial Markets unit of a standard college-level principles of macroeconomics course. Topics covered include:

  • Measuring the money supply
  • Four basic functions of money
  • Fractional reserve system
  • How money is made
  • Money and the multiplier effect

21 Lessons in Chapter 11: Money, Banking, and Financial Markets: Help and Review
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.

Present and Future Value: Calculating the Time Value of Money

2. 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.

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.

The 5 C's of Credit

11. The 5 C's of Credit

What's your creditworthiness? When a business owner needs a loan from the bank or financial institution, they will go through an evaluation process to determine their eligibility. Business owners need to consider what financial institutes look at. In this lesson you will learn about the process known as the 5 C's of credit.

What Are Commercial Banks? - Definition, Roles & Functions

12. What Are Commercial Banks? - Definition, Roles & Functions

You may not realize it, but there are different types of banks and not all banks are authorized to do the same things. In this lesson, you'll learn about commercial banks, including their role and function in an economy. A short quiz follows.

The Circular Flow of Income: Definition & Model

13. The Circular Flow of Income: Definition & Model

In this lesson, we will look how the circular flow of income works. We will look at key terms, the roles of households and firms, and some exceptions to the model in terms of leakages and injections. A summary and quiz will conclude the lesson.

The Functions and Characteristics of Money

14. The Functions and Characteristics of Money

Money makes the world go around. In this lesson, we will learn more about money. We will break it down into its separate functions and look closer at its many characteristics.

What is the Gold Standard? - Definition & History

15. What is the Gold Standard? - Definition & History

This lesson will give an explanation of the economic principle of the gold standard, and its differing variations. We will also conduct a brief history of the usage of the gold standard.

What is the Dow Jones Industrial Average? - History & Performance

16. What is the Dow Jones Industrial Average? - History & Performance

Few numbers come as close as the Dow Jones Industrial Average in giving us a quick look at how the economy is doing. But what is the Dow? This lesson explains its history.

Currencies of the World

17. Currencies of the World

Every country has some form of money it uses. In this lesson, we are going to explore some of the most powerful currencies in the world and see how they relate to each other.

Accounting vs. Economic Costs: Examples & Comparison

18. Accounting vs. Economic Costs: Examples & Comparison

It's easy to identify costs associated with running a business - labor, materials, rent, and advertising. These are all accounting costs, and in this lesson, we'll discuss how they compare to economic costs, and why it matters.

Rolled Throughput Yield (RTY): Definition & Formula

19. Rolled Throughput Yield (RTY): Definition & Formula

In this lesson we will define throughput yield. We will also explore the different uses of this calculation typically used in manufacturing and apply it to the financial services industry.

Roll Yield: Definition, Strategy, Calculation & Example

20. Roll Yield: Definition, Strategy, Calculation & Example

This lesson defines roll yield and other key concepts of futures contracts needed to fully understand the calculation including backwardation and contango.

Herd Behavior and Investment in Financial Markets

21. Herd Behavior and Investment in Financial Markets

This lesson explains why humans are prone to herd behavior in financial markets by discussing a few human biases like social proof and incentive-caused bias. You'll also learn about steps you can take prevent being 'swept' away by a group.

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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