Ch 120: NMTA Social Science: Money, Banking & Financial Markets

About This Chapter

Let us assist you in reviewing information on money markets, banking structure and financial assets as you prepare for the NMTA Social Science exam. With our video lessons and quizzes, you can be ready to handle these types of exam questions.

NMTA Social Science: Money, Banking & Financial Markets - Chapter Summary

Brush up on your grasp of facts about types of financial assets, the money supply and bank lending as you study for the NMTA Social Science exam. These lessons will help you understand exam questions regarding the following:

  • Understanding money, stocks and bonds
  • Explaining how the money supply is measured
  • Defining required and excess reserves
  • Describing the process of bank lending
  • Utilizing the multiplier effect formula
  • Identifying how interest rates are determined
  • Examining money supply and demand curves

Using plenty of examples from the real world, our instructors make these short lessons both informative and entertaining. As you prepare for the exam, you can study anywhere there's an Internet signal and view the lessons as your schedule permits.

Objectives of the NMTA Social Science: Money, Banking & Financial Markets Chapter

All New Mexico teachers who want certification in social science must pass the NMTA Social Science exam. The material this chapter covers is in the exam's section on economics, which makes up 12% of the total score.

All questions on the exam are multiple-choice, meaning you must read a statement or question and choose the best response from several options. The test is administered by computer. The brief quizzes that complement each of our lessons offer you the opportunity to practice responding to questions in this format and also let you assess your knowledge of the subject matter.

7 Lessons in Chapter 120: NMTA Social Science: 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.

Measuring the Money Supply: Explanation and Examples

2. 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.

Fractional Reserve System: Required and Excess Reserves

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.

How Money Is Made: Understanding Bank Lending in the Economy

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.

Money and Multiplier Effect: Formula and Reserve Ratio

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.

Money Demand and Interest Rates: Economics of Demand

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.

The Money Market: Money Supply and Money Demand Curves

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.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
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 NMTA Social Science (303): Practice & Study Guide course

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