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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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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