After studying budgeting last week, we are learning how money flows in our economy.

Begin Lesson 7-The Case of the Mystical Money

Go over the vocabulary.

Discuss financial services provided by banks.

Discuss the different financial institutions and the differences between them.

Essential Questions:

1.  What is accepted as money?

2.  Why does money have value?

3.  What are banks?

4.  What is the Federal Reserve System and how does it work?

5.  What services do banks provide?

6.  What is recession?  Inflation?

Objectives:

Define money, give its forms, its functions and explain why it has value.

Distinguish between various financial institutions and the services they provide for you.

Identify at least three functions banks provide in our economy.

Describe who owns banks and how they earn profits.

List several functions of the Federal Reserve System.

Diagram the flow of goods/services and cash flow through the economy.

Define and identify causes of inflation and recession and explain why savers and borrowers need to know about these cycles of the economy.