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Ch 62: Money, Banking & Financial Markets - MTEL Political Science/Political Philosophy

About This Chapter

Enhance and reinforce your understanding of the role of money in our society as you prepare for the MTEL Political Science/Political Philosophy exam. The practice you will gain in these lessons will help you approach the test with confidence.

Money, Banking & Financial Markets - MTEL Political Science/Political Philosophy - Chapter Summary

This chapter focuses on the flow and supply of money and its pervasive impact on other facets of the economy. The topics listed below are covered in the videos:

  • Definition and examples of stocks, bonds and money
  • Money: definition, functions, current and future value
  • Definition and explanation of fractional reserve banking
  • Role and significance of bank lending
  • How the money multiplier effect works
  • Economics of demand and interest rates
  • Money supply and the money market

This study guide places everything you need within easy reach. Access to instructors and subject matter experts for questioning or consultation is only a mouse-click away. Important terminology is highlighted in the transcripts that accompany each video to make reference and identification fast and easy, and you can access the study guide from any device that connects you to the internet.

Money, Banking & Financial Markets - MTEL Political Science/Political Philosophy Chapter Objectives

There are six subareas that comprise the MTEL Political Science/Political Philosophy exam, part of the teacher certification and endorsement process in Massachusetts. Subarea V: Geography and Economics, to which the lessons in this chapter align, contains approximately 13 questions and is weighted as 10% of the exam.

Altogether, there are 100 multiple-choice questions on this exam. It is computer-based. In addition to the multiple-choice section, you are given two open-response assignments. You must compose a 150- to 300-word original essay or article in response to the topic or question provided for both of these.

10 Lessons in Chapter 62: Money, Banking & Financial Markets - MTEL Political Science/Political Philosophy
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.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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Other Chapters

Other chapters within the MTEL Political Science/Political Philosophy (48): Practice & Study Guide course

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