Focus: Explain why financial systems encourage growth and describe certain types of financial assets.
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4.2: Nominal v. Real Interest Rates - NEW (Review) 2/20
Focus:
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4.3: What is Money? Definition, Measurement, and Functions 2/20
Focus: Explain the role of money in creating efficiency in an economy. Describe the three roles money fulfills. Define the various measures of the money supply.
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4.4: The Banking System 2/21
Focus: Describe the U.S. banking system. Accurately create balance sheets for banks that correctly show the accounting equation.
Packet Pages: 320 - 323
4.5: Fractional Reserve Accounting & Banking 2/24
Focus: Explain how banks "create money" through fractional reserve banking. Show how a bank's t-chart will change as a result of this process
Packet Pages: 324 - 331
4.6: The Money Market 2/25
Focus:
Packet Pages: 341- 343
4.7: The Federal Reserve System 2/27
Focus: Describe the organization and major duties of the Federal Reserve System. Discuss the history of the Fed and the roles it performs for the modern U.S. financial system.
Packet Pages: 332 -
4.8: Monetary Policy Tools 2/27
Focus: Describe the ways the Federal Reserve can increase and decrease the money supply to expand or contract the economy. Analyze the effect of policy decisions and choose the corect tools to achieve a specific monetary policy goal.
Packet Pages: 344 - 353
4.9: Monetary Policy 2/28
Focus:
Packet Pages: 368 - 372
4.10: Loanable Funds Market 3/2
Focus: Draw and explain the market for Loanable Funds. Contrast this with the money market. Explain what causes supply and demand for loanable funds to shift, how this affects real interest rates, and how it affects Aggregate Supply and Aggregate Demand.