Ch 31: PLACE Business Education: Macroeconomics and the Fundamentals of Money

About This Chapter

Study the basics of money flow in this chapter on macroeconomics and the fundamentals of money. After reviewing these lessons, you'll be better prepared for related economics questions that may appear on the PLACE Business Education exam.

PLACE Business Education: Macroeconomics and the Fundamentals of Money - Chapter Summary

The PLACE Business Education exam will cover some aspects of macroeconomics. To prepare for exam questions related to the functions of money, use our lessons to review the following topics:

  • The basics of money, including types and functions
  • Fractional reserve system
  • Banks' roles in lending and the economy
  • The multiplier effect
  • Interest rates and money demand
  • Institutions in the US banking system
  • The function of government during financial emergencies
  • Banking technologies
  • Global banking services and organizations

The lessons in this chapter are taught by professional instructors who take you through these topics step-by-step. The videos are short and can be viewed as many times as you feel necessary. Also included with each lesson is a text transcript and a quiz, so you can review important vocabulary terms.

PLACE Business Education: Macroeconomics and the Fundamentals of Money Chapter Objectives

The PLACE Business Education test is split into five subject areas. One of these is Economics and Personal Finance. All the questions in this section are multiple choice, and they may test you on topics like the supply and demand of money and banking - topics covered in this chapter.

12 Lessons in Chapter 31: PLACE Business Education: Macroeconomics and the Fundamentals of Money
Test your knowledge with a 30-question chapter practice test
What is Money? - Definition and Types

1. 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

2. 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

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.

Institutions of the U.S. Banking System

8. Institutions of the U.S. Banking System

The United States banking system is diverse and consists of many different types of institutions. In this lesson, you'll learn about commercial banks, savings and loan associations, credit unions, and investment banks.

How the Government Protects Your Money During a Financial Crisis

9. How the Government Protects Your Money During a Financial Crisis

In this lesson, you'll learn about some of the causes of the financial crisis of 2008 that brought us the Great Recession. You'll also learn what steps the federal government can take to help protect your money when the next financial crisis hits.

How Technology Makes Banking More Efficient

10. How Technology Makes Banking More Efficient

If you've ever heard the cliché 'banker's hours,' you know that banking traditionally has not been a fast and efficient process. In this lesson, you'll learn about how technology has improved the efficiency of banking for customers.

International Banking and Services

11. International Banking and Services

Business never stops in the global economy. Companies need banking services 24 hours a day on different continents. In this lesson, you'll learn about international banking, including services provided and types of banks.

The World Bank, IMF & Other International Banking Organizations

12. The World Bank, IMF & Other International Banking Organizations

International banking and financial organizations exist to encourage economic and financial stability, help facilitate trade, and help with economic development. In this lesson, you'll learn about some of these important organizations.

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 PLACE Business Education: Practice & Study Guide course

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