About This Chapter
NMTA: Money, Banking & Financial Markets - Chapter Summary
The lessons in this chapter can help you refresh your knowledge of money, banking and financial markets as you prepare for the NES Middle Grades Social Science test, which has replaced the NMTA test. After watching the videos, you should be prepared to answer questions that address the following:
- Identifying types of financial assets
- Examining the concept of present and future value of money
- Analyzing how to measure the money supply
- Defining money and examining its four basic functions
- Understanding the fractional reserve system
- Analyzing how money is made
- Examining the money multiplier, money demand and the money market
Using the video lessons to prepare for your exam is simple. You can watch and rewind at your own leisure and even access video timelines to skip to specific sections in the lessons. The instructors offer entertaining visual effects that make the learning process fun, while ensuring you get the comprehensive overview of money, banking and financial markets you deserve.
NMTA: Money, Banking & Financial Markets Chapter Objectives
The topics covered in the NMTA: Money, Banking & Financial Markets chapter are located in the economics portion of the exam, which constitutes approximately 12% of the total test. The NES Middle Grades Social Science assessment gauges your comprehension of the subject to ensure you're ready to secure your teaching license in New Mexico. To get you steps closer to your goal, you can examine the video lessons in this chapter then take short self-assessment quizzes and a chapter exam to assess your comprehension of the materials. If you have any questions about this chapter, instructors are ready to assist.
The assessment is composed of all multiple-choice questions. You will be asked to review each question carefully then examine a set of four answers. After determining which answer best responds to the question, you will select it as the correct option.
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 NMTA Middle Grades Social Science (202): Practice & Study Guide course
- NMTA: Historical Research & Writing
- NMTA: Early Civilizations
- NMTA: Major Religions
- NMTA: Byzantine Empire & Islamic Civilization
- NMTA: Development of Europe
- NMTA: The Renaissance
- NMTA: Reformation in Europe
- NMTA: Aztec & Inca Civilizations
- NMTA: The Age of Exploration
- NMTA: The Scientific Revolution & Enlightenment
- NMTA: Industrialization
- NMTA: Causes & Effects of Revolutions
- NMTA: Political Developments in Europe & Asia
- NMTA: Imperialism in the 19th & 20th Centuries
- NMTA: World War I
- NMTA: Between the World Wars
- NMTA: World War II
- NMTA: Western Civilization Since 1945
- NMTA: First Contacts in the Americas
- NMTA: Settling North America
- NMTA: Road to the American Revolution
- NMTA: The American Revolution
- NMTA: The Making of a New Nation
- NMTA: The Virginia Dynasty
- NMTA: Jacksonian Democracy
- NMTA: Life in Antebellum America
- NMTA: Manifest Destiny
- NMTA: American Civil War
- NMTA: Reconstruction
- NMTA: Westward Expansion, Industrialization & Urbanization
- NMTA: American Imperialism
- NMTA: The Progressive Era
- NMTA: The Roaring 20s in America
- NMTA: The Great Depression
- NMTA: Post-War World
- NMTA: The Cold War
- NMTA: Protests, Activism & Civil Disobedience
- NMTA: The 1970s in America
- NMTA: America in the 1980s
- NMTA: America from 1992 to the Present
- NMTA: Introduction to Geography
- NMTA: Tools Used by Geographers
- NMTA: The Origin & Dispersal of Humans & Culture
- NMTA: Effects of Population on the Environment
- NMTA: Spatial Processes
- NMTA: Geography of Land Resources
- NMTA: Impacts of Humans on the Environment
- NMTA: Settlement Patterns
- NMTA: Ethnicity & Geography
- NMTA: Culture, Socialization & Social Interaction
- NMTA: Social Groups & Organizations
- NMTA: Basic Terms & Concepts of Political Science
- NMTA: Political Ideologies & Philosophy
- NMTA: The Study of American Government
- NMTA: Constitutional Democracy
- NMTA: Federalism in the United States
- NMTA: Civil Liberties
- NMTA: Civil Rights
- NMTA: Electoral Systems
- NMTA: Types of Legislatures in Government
- NMTA: The American Presidency
- NMTA: Congressional Powers & Representation
- NMTA: The Federal Judicial System
- NMTA: Foreign Policy
- NMTA: Consumer Economics
- NMTA: Personal Finance
- NMTA: Types of Business Organization
- NMTA: Scarcity, Choice & the Production Possibilities Curve
- NMTA: Demand, Supply & Market Equilibrium
- NMTA: Aggregate Demand & Supply
- NMTA: Measuring the Economy
- NMTA: Inflation Measurement & Adjustment
- NMTA: Understanding Unemployment
- NMTA: Macroeconomic Equilibrium
- NMTA: Inflation & Unemployment
- NMTA: Central Bank & the Money Supply
- NMTA: Economic Policies
- NMTA Middle Grades Social Science Flashcards