Chapter 20 - Money, financial institutions, and the federal reserve. After completing this unit, you should be able to: Explain what money is and what makes money useful, describe how the Federal Reserve controls the money supply, trace the history of banking and the Federal Reserve System, classify the various institutions in the . banking system. | Money, Financial Institutions, and the Federal Reserve Chapter 20 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Explain what money is and what makes money useful. Describe how the Federal Reserve controls the money supply. Trace the history of banking and the Federal Reserve System. Classify the various institutions in the . banking system. LEARNING GOALS Chapter Twenty 20- Briefly trace the causes of the banking crisis starting in 2008 and explain how the government protects your funds during such crises. Describe how technology helps make banking more efficient. Evaluate the role and importance of international banking, the World Bank, and the International Monetary Fund. LEARNING GOALS Chapter Twenty 20- Bernanke is a former Princeton economics professor. Former President George W. Bush appointed Bernanke Chairman of the Federal Reserve in 2006. BEN BERNANKE Federal Reserve Profile Almost every factor related to . | Money, Financial Institutions, and the Federal Reserve Chapter 20 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Explain what money is and what makes money useful. Describe how the Federal Reserve controls the money supply. Trace the history of banking and the Federal Reserve System. Classify the various institutions in the . banking system. LEARNING GOALS Chapter Twenty 20- Briefly trace the causes of the banking crisis starting in 2008 and explain how the government protects your funds during such crises. Describe how technology helps make banking more efficient. Evaluate the role and importance of international banking, the World Bank, and the International Monetary Fund. LEARNING GOALS Chapter Twenty 20- Bernanke is a former Princeton economics professor. Former President George W. Bush appointed Bernanke Chairman of the Federal Reserve in 2006. BEN BERNANKE Federal Reserve Profile Almost every factor related to the economy is influenced by the decisions he makes. 20- Money -- Anything people generally accept as payment for goods and services. WHAT’S MONEY? What is Money? Barter -- The direct trading of goods or services for other goods or services. LG1 20- Portability Divisibility Stability Durability Uniqueness STANDARDS for a USEFUL FORM of MONEY LG1 What is Money? 20- Money Supply -- The amount of money the Federal Reserve makes available for people. The money supply is referred to as: M1 -- Money that can be accessed quickly (coins, paper money, travelers’ checks, etc.). M2 -- M1 + money that may take a little time to obtain (savings accounts, mutual funds, etc.). M3 -- M2 + big deposits like institutional money market funds. The MONEY SUPPLY What is the Money Supply? LG2 20- MONEY FACTS What You Might Not Know About What’s in Your Wallet Source: Fast Company, February 2011. LG2 What is the Money Supply? In 2009, the . printed 26,000,000 bills a day! Each
