Thursday, April 6, 2006



Students shall be able to

  1. identify assets of a bank.

  2. identify liabilities of a bank.

  3. define "demand deposit."

  4. define "fractional reserve banking."

  5. define "reserve requirement."

  6. given the dollar amount of deposits and the reserve requirement, calculate the dollar amount of loans possible (i.e. "excess reserves")

  7. explain how the banking system creates money.

  8. explain the historical development of the Federal Reserve System and the FDIC.



  1. Students shall watch "Economics USA: Banking System."

  2. Students shall answer questions from the video.


  1. Watch "Economics USA: Banking System."

  2. Respond to this set of questions on the left side of your notebook. [Word document or PDF file]



Monitor and adjust as necessary. Check student work in the notebook.

TEKS involved: 1A, 1B, 2C, 2D, 4A, 8A, 8B, 11B, 15A, 15B, 18B, 19D, 24A, 24B, 24C, 24D