The structure and functions of the federal reserve system smart lesson 2 page preparation before the lesson, make one copy of handouts 1 and 2 for each student. The federal reserve system is the third central banking system in united states history. Hill a lesson to accompany the money in motion exhibit introduction the federal reserve system is our nations central bank. The first bank of the united states 17911811 and the second bank of the united states 18171836 each had a 20year charter. Your introduction to the federal reserve and you lesson description in this lesson, students view a film segment from the federal reserve and you that introduces the federal reserve.
Your gateway to the history of the federal reserve system. The origins of the federal reserve deep black lies. This history of the federal reserve begins by giving an overview of american banking practices before the federal reserve s formation. Included are a dvd that outlines the role and responsibilities of the federal reserve bank of chicago, a game that helps students understand the concept of inflation, a set of multiplechoice questions, and a takehome assignment that requires the students to reflect on what they have learned. Explain that in the history of the united states, there have been a number of bank panics. The system is composed of a central, independent governmental agencythe board of governorsin washington, d. The origins of the federal reserve mises institute. An actual rate of inflation is revealed at the end of the period and students determine whether the borrower, or lender, is better off. Very large banks or other institutions with activities vital to financial. The 12 federal reserve banks, and their 25 branch offices around the country, provide. Discussion questions for this round focus on the roll of the federal reserve in providing forward guidance around inflationary expectations. Teach your macroeconomics students about the functions of money, the organization of the federal reserve, and fiscal and monetary policy with this editable powerpoint presentation, cloze notes, foldable graphic organizer, and exit ticket.
To help you do just that, the federal reserves currency education program. Federal reserve in response to the events of september 11. Although parts of the federal reserve system share some characteristics with privatesector entities, the federal reserve was established to serve. The modern federal reserve system frs centennial lesson plan procedure 1. The modern federal reserve system frs centennial lesson plan a commercial banks reserve account is its account at the federal reserve that holds its reserves in excess of the cash it keeps on hand.
In 19 congress passed the federal reserve act, which established the federal reserve. Bue, circle the number of pennies to equal a nickel. Permission is granted to reprint or photocopy this lesson in its entirety for educational purposes, provided the user credits the federal reserve bank of st. Learn vocabulary, terms, and more with flashcards, games, and other study tools. The federal reserve system this learning package concentrates on why the federal reserve was created, the purpose of fed, its three key duties, the money supply, and monetary policy.
The federal reserve system virtually controls the nations monetary system, yet it is accountable to no one. Students complete four activities at the money in motion exhibit to learn more about the. The information has been simplified, condensed, and stays focu. You also learned that the fed has a number of tools for changing the rate of growth of the money. After the students are in groups, we will distribute different economic scenarios.
Answer the following questions using complete sentences. Money, banking, and the federal reserve system vocabulary. A federal system of government is one that divides the powers of government between the national federal government, and state and local government in which each level has sovereignty in some areas and shares powers in other areas see the fact file below for more information on the federal government or alternatively, you can download our 30page federal government worksheet pack to. Speech by chair powell on current economic issues speech 52020. These resources are effective in teaching about various topics in economics, money and banking, personal finance, and. Established by the federal reserve act of 19, the fed is actually the third and longestrunning central bank in united states history. The section of the federal government that manages the nations money. Below you will find companion worksheets you can use with your students as they are working their way through the currency academy uscurrency. They learn the components of a check and how to organize and enter information into a bank account register, balance a monthly account statement, and write. The companion worksheets will help you check your students. The federal reserve system is our nations central bank.
The federal reserve is the current central banking system of the united states of america. These are the words of the late professor murray n. It is composed of twelve regional federal reserve banks and twentyfour federal reserve bank branches. Lesson plans and resources federal reserve bank of new york. The structure and functions of the federal reserve system. The history of the reserve system and its influence on the economy is described. History of federal reserve act legislation on the subject of banking and currency should have for its purpose the securing of these accommodations on terms of absolute security to the public and of complete protection from the misuse of the power that wealth gives to those who possess it. Procedure instructions for the smart board have been put in.
Division of country into twelve federal reserve districts, 2829. Currency may also be referred to as paper money, banknotes, cash or bills. What we do lesson plan kit federal reserve bank of chicago. The reason that the federal reserve goes to such great lengths to make its organizational structure as confusing as possible is to cover up the massive conflicts of interest that are at the heart of that system. The federal reserves governing and monetary policymaking body. Lesson plans, grades 9 12 federal reserve bank of kansas city. Test your knowledge about federal reserve history through this quiz. The events leading to the reserve s creation, and its early trials and tribulations, are then documented. Follow us on twitter get the latest on educational resources from the federal reserve.
Procedure instructions for the smart board have been put in italics. These are readytouse federal government worksheets that are perfect for teaching students about a federal system of government which is one that divides the powers of government between the national federal government, and state and local government in which each level has sovereignty in some areas and shares powers in other areas. History of the federal reserve federal reserve education. In chapter 15 you learned that the federal reserve, or the fed, is the institution given the responsibility of controlling just how scarce money will be. For the average size class of 25, 6 scenarios will be needed can be adjusted as necessary for class size.
Cards, cars, and currency in this lesson students will learn about the basics of credit and debit cards, along with a big purchase like a car. This paper examines the centralization of federal reserve power at the board of. This is a complete lesson plan about the basic history and organizational structure of the federal reserve system. Lesson plans and resources economic education suggests the following resources created by federal reserve system educators for teachers, students, and consumers. This lesson presents a history of federal reserve events and milestones from 1907 to. The federal reserve during world war i treasury department. One of the most influential proponents of this act was robert l. Museum visit lesson plan federal reserve bank of new york.
Lesson plans and resources federal reserve bank of new. Federal reserve act, creating the federal reserve system. Both banks issued currency, made commercial loans, accepted deposits, purchased securities, maintained multiple branches and acted as fiscal agents for the u. This paper explores early fed history with a particular emphasis on the period between 1947 and 1953 in order to provide a complete political account of fed independence. The federal reserve, monetary policy and the economy. Coordination of twelve federal reserve banks and centralization of their control provided for by means of federal reserve board, advisory council, and class. After reading a comic book on monetary policy and answering guided questions, your class members will take part in an interactive online simulation in which they will discover how altering the federal funds rate affects unemployment and. Cash the check and track the dough standards and benchmarks see page b26 lesson description students learn about checking accounts, savings accounts, and checkcashing services. Did you know that the feds responsibilities include conducting monetary policy, supervising and regulating and providing services to financial institutions. Barriers to insurance activities, however, proved more difficult to circumvent. Grade level 812 concepts currency features and history federal reserve system functions of money objectives students will.
T he federal reserve system and monetary policy money, to remain valuable, must remain scarce. Find your federal reserve district locate your local federal reserve office for programs, museums and tours. How does the fed manipulate the money supply in the united states. The international currency system became operational in 1958. The financial elites of this country, notably the morgan, rockefeller, and kuhn, loeb interests, were responsible for putting through the federal reserve system, as a governmentally created and sanctioned cartel device to enable the nations banks to inflate the money supply in a coordinated fashion, without suffering quick retribution from depositors or note holders demanding cash.
Facts behind the fed use this lesson to introduce students to common myths about the federal reserve and the reality behind these common misconceptions. There are three key entities in the federal reserve system. Using an anticipationreaction guide, students learn what the fed is, what it does, and what its impact on the economy is. The federal reserve system is the central bank for our nation. Federal reserve date back to 1910, when a group of politicians and businessmen gathered for a secret meeting on jekyll island, off the coast of southern georgia. Federal reserve publishes updates to the term sheet for the term assetbacked securities loan facility talf and. History of federal reserve act history n monday, october 21, 1907, the na tional bank of commerce of new york city announced its refusal to clear for the knickerbocker trust company of the same city. This history of the federal reserve begins by giving an overview of american banking practices before the federal reserves formation. The federal r e s e r ve and the payments system the federal reserve, consistent with its responsibilities as the nations central bank, aff i rm e d today its readiness to serve as a source of liquidity to support the economic and financial system. Students explore the purpose and structure of the federal reseve system and its relationship with the united states department of. The feds most important job is making sure there is enough money and credit to allow the economy to grow, but not so much money that the currency loses. Defining moments in federal reserve system history. This quiz on the federal reserve act of 19 and its creation of the federal reserve system has been designed to improve your comprehension of the topics discussed in.
Its no coincidence that the federal reserve system was established by the wilson administration. The federal reserve, federal reserve bank of boston financial markets and regulation history an examination of the banking crises of the 1980s and early 1990s, fdic. Topic time period people the feds functions related resources topic. Just before christmas 19, the federal reserve act was passed by congress and signed by president wilson. The federal reserve and monetary policy lesson plan for. Composed of the 12 regional federal reserve banks and the board of governors in washington, d. Part two continues by exploring centralization and technocracy at the federal reserve. Teachers guide part 1 money objectives students will classify items according to the characteristics and functions of money and determine if various objects could function as money. Essays on federal reserve bank evolution, transparency and. Use this engaging lesson simulation to teach your students about the federal reserve. Materials provided by the federal reserve bank of richmond 15. Testimony by vice chair for supervision quarles on supervision and regulation testimony 52020. But before the federal reserve system was established, the united states faced another crisis in july 1914. Today, the federal reserve has a complex, but important.
Previsit lesson grades 9 12 1 te a c h e r in t r o d u c t i o n. It established a federal reserve system to oversee monetary policy and regulate the commercial banks. With this law, congress established a central banking system, which would enable the worlds. This board consists of seven governors appointed by the president to staggered 14year teams. A bond dealer is a financial intermediary associated with an investment bank. The federal reserve and monetary policy lesson plan for 9th. The fact is that the federal reserve system is comprised of a board of governors, 12 regional banks, and an open market committee. Your introduction to the federal reserve and you final.
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