About This Chapter
MTTC History: Money, Banking & Financial Markets - Chapter Summary
Use these video lessons to get up to speed on financial assets, functions of money and the money market. Our instructors guide you through each lesson, using real-life examples to help you understand essential money concepts, such as:
- Financial asset types
- Steps to calculate the time value of money
- Measurements of the money supply
- The basic functions of money
- Fractional Reserve System
- Effects of bank lending on the economy
- Money multiplier formula
- The demand for money and interest rates
- Money supply and demand curves
Calculations presented in these lessons are laid out step-by-step, so you can easily remember how to use them. You'll also find lesson transcripts that you can use to quickly pinpoint definitions for key terms. Video tags let you refer back to just the main points of a video that you want to review, or you can re-watch videos as many times as you want while getting ready for the MTTC History exam.
Objectives of the MTTC History: Money, Banking & Financial Markets Chapter
Aspiring history teachers in Michigan are required to take the MTTC History exam as a step in the licensing process. The exam is used to ensure your comprehension of critical history topics and is offered in a multiple-choice format. The exam has four subareas, including interdisciplinary perspectives, which is where you'll be expected to answer questions on money and banking. About 24% of questions on the exam are found in this subarea.
Self-assessment quizzes accompany each of our lessons and are in the same format as the questions on the exam, offering you a simple way to practice for the exam and get familiar with the style of questions you'll be answering.
1. Types of Financial Assets: Money, Stocks & Bonds
Financial assets are resources owned by people or organizations that have monetary value derived from a contractual claim. Learn more about the three main types of financial assets, such as money, stocks, and bonds.
2. Present and Future Value: Calculating the Time Value of Money
The time value of money is a critical concept in accounting and financial management. Explore how to calculate both the present and future values of money and annuities.
3. Measuring the Money Supply: Explanation and Examples
The money supply is defined as all the money in circulation around the country at any given time. Explore an explanation and find examples of how the Federal Reserve measures the health of the nation's money supply.
4. What is Money? - Definition and Types
Money is defined as anything that is widely accepted in exchange for goods and services. Discover the three different types of money, how money benefits society, and consider what the world would be like without money.
5. The Four Basic Functions of Money
Money has four basic functions that help to create the foundation of the money system. Learn about the different types of functions money serves, explore the units that we can qualify as money, and take some examples to illustrate each point.
6. Fractional Reserve System: Required and Excess Reserves
In the fractional reserve system, banks hold a small fraction of deposits as required and excess reserves. Explore the inner workings of the fractional reserve banking system and learn why banks can loan out some, but not all, of the money it has deposited.
7. How Money Is Made: Understanding Bank Lending in the Economy
Banks make money by charging interest on the money they lend to individuals and businesses and are required by the fractional reserve banking system to hold a certain amount of cash deposits in reserve. Learn how money is made by understanding how bank lending works and its impacts on the economy.
8. Money and Multiplier Effect: Formula and Reserve Ratio
Although banks make money by making loans to people and businesses, they are required to hold a portion of deposits in reserve. Explore how the multiplier effect formula and reserve ratio are calculated and how reserve limits impact the money supply and the economy.
9. Money Demand and Interest Rates: Economics of Demand
Money, and the demand for it, are different from both income and wealth. Learn about the economics of the demand for money, the factors that can cause demand to change, the motivators for holding money, and how money demand affects interest rates.
10. The Money Market: Money Supply and Money Demand Curves
A money market is an economic model for describing a country's money supply and demand, while a demand curve denotes the quantity of money demanded at a given interest rate. Learn about the demand curve, supply curve, and how they illustrate the economic equilibrium of a nation.
Earning College Credit
Did you know… We have over 220 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.
To learn more, visit our Earning Credit Page
Other chapters within the MTTC History (009): Practice & Study Guide course
- MTTC History: Historical Research
- MTTC History: Tools for the Classroom
- MTTC History: The Stone Age
- MTTC History: The Bronze & Iron Ages
- MTTC History: Ancient Civilizations
- MTTC History: Ancient Middle East & India
- MTTC History: Early China & Japan
- MTTC History: Foundations of Religion
- MTTC History: Hinduism
- MTTC History: Buddhism
- MTTC History: Confucianism
- MTTC History: Judaism
- MTTC History: Christianity
- MTTC History: Islam
- MTTC History: Classical Greece
- MTTC History: The Roman Republic & The Roman Empire
- MTTC History: Government & Culture in the Middle Ages
- MTTC History: War, Revolution & Culture in France & England
- MTTC History: European Renaissance & Reformation
- MTTC History: African Cultures Before European Colonization
- MTTC History: Exploration & Colonization of the Americas
- MTTC History: Revolution & War in the Americas
- MTTC History: Revolution & Independence in Europe
- MTTC History: The Industrial Revolution & Enlightenment
- MTTC History: Germany During the World Wars
- MTTC History: The World Wars
- MTTC History: The Cold War
- MTTC History: Pre-Columbian North America
- MTTC History: Early North American Settlements
- MTTC History: Road to the American Revolution
- MTTC History: The American Revolution
- MTTC History: Ratification of the U.S. Constitution
- MTTC History: The Virginia Dynasty
- MTTC History: Jacksonian Democracy
- MTTC History: Manifest Destiny
- MTTC History: The American Civil War
- MTTC History: American Reconstruction
- MTTC History: Industrialization & Urbanization in the U.S.
- MTTC History: The Progressive Era
- MTTC History: American Imperialism
- MTTC History: The Roaring 20s in the U.S.
- MTTC History: The Great Depression in the U.S.
- MTTC History: World War II
- MTTC History: The Cold War & U.S. Politics
- MTTC History: Protests, Activism & Civil Rights
- MTTC History: America in the 1970s
- MTTC History: Contemporary American Presidents
- MTTC History: Introduction to Geography
- MTTC History: Spatial Processes
- MTTC History: Geography Tools
- MTTC History: The Dispersal of Humans & Culture
- MTTC History: Human Settlement Patterns
- MTTC History: Population & the Environment
- MTTC History: Ethnicity & Geography
- MTTC History: Geography of Languages, Religions & Material Culture
- MTTC History: Basics of Political Science
- MTTC History: American Government Overview
- MTTC History: Constitutional Democracy in the U.S.
- MTTC History: Federalism in the U.S.
- MTTC History: Political Ideologies & Philosophy
- MTTC History: American Political Culture, Opinion & Behavior
- MTTC History: Civil Liberties in the U.S.
- MTTC History: Civil Rights in the U.S.
- MTTC History: U.S. Political Parties
- MTTC History: U.S. Electoral Systems
- MTTC History: Interest Groups & American Democracy
- MTTC History: Federal Bureaucracy in the U.S.
- MTTC History: Types of Legislatures in Government
- MTTC History: The American Presidency
- MTTC History: The American Congress
- MTTC History: The Federal Judicial System
- MTTC History: Introduction to Economics
- MTTC History: Scarcity, Choice & the Production Possibilities Curve
- MTTC History: Demand, Supply & Market Equilibrium
- MTTC History: Aggregate Demand & Supply
- MTTC History: Measuring the Economy
- MTTC History: Federal Government & the American Economy
- MTTC History: Inflation Measurement & Adjustment
- MTTC History: Understanding Unemployment
- MTTC History: Inflation & Unemployment
- MTTC History: Macroeconomic Equilibrium
- MTTC History: Central Bank & the Money Supply
- MTTC History: Fiscal & Monetary Policies
- MTTC History: Foreign Exchange & the Balance of Payments
- MTTC History: Democratic Values & Society
- MTTC History Flashcards