MONEY AND THE ROLE OF FINANCIAL INSTITUTIONS

Proficiency Statements and Indicators:

• Identify and explain the basic functions of money.
• Identify the composition of the money supply in the United States.
• Explain the role of banks and other financial institutions in the
  economy of the United States.
• Describe the organization and function of the Federal Reserve system.
• Demonstrate how banks "create" money through the principle of
  fractional reserve banking.
• Define inflation. Identify the different causes of inflation, and
  explain who gains and loses by inflation.
• Compare and contrast services available to the consumer from
  financial institutions. (e.g., credit, savings, investment).

Sample Student Activities/Projects:

• Identify and discuss different entitlement programs (e.g., farm subsidies, Medicare, Aid to Families with Dependent Children, etc.).
• Compare and contrast the differences between private and public programs to alleviate poverty.
• Determine if a textbook fee is progressive, proportional or regressive.
• Compare and contrast the differences between private and
  public programs to alleviate poverty.
• Determine if a textbook fee is progressive, proportional or regressive.
• Compare and contrast information on Silver Certificates (pre-1964)
  and current Federal Reserve notes.
• Track the money supply in the United States using newspapers,
  periodicals or computer data bases.
• Construct graphs illustrating the composition of the money supply in
  the United States.
• Calculate the constant dollar price of a bundle of consumer items
  using a consumer price index.

LABOUR PRODUCTIVITY