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Ch 76: NES: Money, Banking & Financial Markets

About This Chapter

This chapter uses informative video lessons to help you review money, banking and financial markets for the National Evaluation Series (NES) Middle Grades Social Science exam.

NES: Money, Banking & Financial Markets - Chapter Summary

Let us help you brush up on financial assets, the money supply and the fractional reserve system for the NES Middle Grades Social Science exam. In this chapter on banking, money and financial markets, you'll find lessons and quizzes on the following topics:

  • Stocks, bonds and money as financial assets
  • The time value of money
  • Measuring the supply of money
  • The four main functions of money
  • Required and excess reserves in the fractional reserve system
  • The role of bank lending in the economy
  • Calculating changes in the money supply with the multiplier effect
  • Demand and interest rates
  • Supply and demand curves for the money market

Each of these video lessons uses clear, direct instruction and visual aids to make business topics easy to understand and remember. Skip directly to lesson topics you want to focus on with the interactive video timeline. Assess your understanding and readiness for money questions on the NES exam with the lesson quizzes.

NES: Money, Banking & Financial Markets Objectives

The NES Middle Grades Social Science exam is a licensure requirement in some states for middle school social science educators. The test lasts three hours and consists of 150 multiple-choice questions on history, geography, culture, government and economics.

This chapter prepares you for questions about the components of the U.S. financial system, such as banks and financial markets, in the Economics subsection of the exam. This section makes up about 12% of the total test score. Use the practice quizzes in this chapter to get an idea of the types of questions you can expect on the exam.

10 Lessons in Chapter 76: NES: Money, Banking & Financial Markets
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.
Not Taken

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Other Chapters

Other chapters within the NES Middle Grades Social Science (202): Practice & Study Guide course

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