Summary:

The Federal Reserve (Fed) is an independent agency of the United States government. The Fed is responsible for targeting adjustments in the money supply in order to limit unemployment and maintain a healthy level of inflation. Students will learn how the Fed is organized and what tools it uses to regulate the money supply.

Vocabulary:

Money, Functions of Money, Legal Tender, Monetary Policy, Discount Rate, Prime Rate, Federal Funds Rate, Reserve Requirement, Open Market Operations, Money Market, Loose & Tight Money Policy, Board of Governors, Federal Open Market Committee, Structure & History of the Federal Reserve

Skills:

Identify appropriate actions for the Fed to take, given the economic conditions present.

Standards Alignment:

D2.Eco.9.9-12

D2.Eco.10.9-12

D2.Eco.12.9-12

Resources:

Fed Head: This "We the Economy" video introduces the purpose and role of the Federal Reserve in our nation.

How Much Money is There?: This VSauce video explores the different measures of the money supply, and adds a lot of interesting money facts into the mix.

Fed Chairman Game: An interactive game that allows the user to make decisions about monetary policy.

Background on the Fed and the Federal Open Market Committee: Have students create a visual "Fed Tree" that shows the organizations of the Federal Reserve System.

FRED Fed Data: Use this to explore historical data regarding monetary policy and the Fed's use of tools to regulate the money supply. Use the FRED app or simply retrieve multiple indicators from the Federal Reserve website and have students create a synopsis of the economy, and what their recommendations would be in terms of monetary policy. Historic data could also be used so that student suggestions can be compared to actual Fed actions.