Ch 40: WEST Business & Marketing Education: Fundamentals of Money

About This Chapter

Watch these video lessons to reacquaint yourself with the fundamentals of money and how it shapes the economy. Learn important keywords as you study for the WEST Business and Marketing Education exam

WEST Business & Marketing Education: Fundamentals of Money - Chapter Summary

While you may be familiar with some of the common uses for money, you may need to bone up on some of the more complex ways that money is filtered through the worldwide economy. As you study for the WEST Business and Marketing Education exam, watch the video lessons in this chapter closely to find out more information about these key topics:

  • Types of money and its basic functions
  • The fractional reserve system
  • Process of bank lending
  • The money market and supply and demand curves
  • The multiplier effect
  • How demand effects interest rates
  • Domestic and foreign financial institutions
  • Government regulatory practices and financial security
  • Technological advances in banking

Each lesson is short and contains relevant examples, useful visuals, and clear instructions to keep you fully engaged. At the end of each lesson you can answer the questions from the accompanying quiz. Scroll down underneath the videos to view the lesson transcripts and receive the full learning experience. We know that you have a lot to study for as you get ready for the WEST Business and Marketing Education exam, which is why our site lets you view all our materials from just about any device that hooks up to the Internet, so you can have your study notes anywhere at the push of a button.

WEST Business & Marketing Education: Fundamentals of Money Chapter Objectives

In Washington, educators can get endorsed to teach courses related to business or marketing by passing the WEST Business and Marketing Education exam. Getting a score of at least 240 points on this test indicates that an individual has vast knowledge concerning the five major subcategories associated with this field; the topics in this chapter may be encountered within the economics and international law section, which makes up about 17% of the test. Those who complete the study guide for this chapter should be more knowledgeable about how monetary policies and financial institutions affect the economy.

12 Lessons in Chapter 40: WEST Business & Marketing Education: 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.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Other Chapters

Other chapters within the WEST Business & Marketing Education (038): Practice & Study Guide course

Support