About This Chapter
Below is a sample breakdown of the Money and Financial Institutions chapter into a 5-day school week. Based on the pace of your course, you may need to adapt the lesson plan to fit your needs.
|Day||Topics||Key Terms and Concepts Covered|
|Monday|| What is Money? - Definition and Types; |
The Four Basic Functions of Money;
Fractional Reserve System: Required and Excess Reserves;
How Money is Made: Understanding Bank Lending in the Economy
| The functions and advantages of money; |
A description of the system of money;
The origins of this system and the processes involved;
A look at how banks make money
|Tuesday|| Money and Multiplier Effect: Formula and Reserve Ratio; |
Money Demand and Interest Rates: Economics of Demand;
The Money Market: Money Supply and Money Demand Curves
| Calculating the multiplier effect; |
A comparison of income, wealth and money;
An explanation of the money market and what happens when the demand curve shifts
|Wednesday|| Private Investment and Real Interest Rates; |
What is the Federal Reserve System?;
Reserve Requirement, Open Market Operations and the Discount Rate;
Open Market Operations and the Federal Reserve: Definition and Examples
| Government policies and the market for loanable funds; |
The functions of the Federal Reserve;
The Federal Reserve's three main tools;
A look at how the interest rate of the economy is influenced by the Federal Reserve
|Thursday|| Institutions of the U.S. Banking System; |
How the Government Protects Your Money During a Financial Crisis;
How Technology Makes Banking More Efficient
| Credit unions, investment banks, savings and loan associations, and commercial banks; |
The functions of the FDIC;
The convenience of online banking, apps, debit cards and automatic teller machines
|Friday|| International Banking and Services; |
The World Bank, IMF and Other International Banking Organizations
| The benefits of international banks and the services they provide; |
The institutions within these organizations, and an explanation of their policies
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. Federal Reserve System Lesson Plan
If you are discussing the Federal Reserve, this lesson plan explores how the Federal Reserve system supports US banks, impacts interest rates and the money supply. Students will watch a video, answer questions, complete an activity and take a quiz.
11. 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.
12. 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.
13. 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.
14. 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.
15. 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.
16. 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.
17. 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.
18. Stock Market: Definition & Indices
Understanding what the stock market is and how indices summarize the market are essential pieces of knowledge for an investor. Let's take a look at what these terms mean and how investors apply these concepts.
19. 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.
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