APK: Activation of Prior Knowledge Write at least 2-3 sentences describing a time when… you saw the different places money travels from and to [ex. U.S. government, banks, businesses and workers]. _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Question of the Day How is money moved throughout the financial system? [Use at least three specific examples from the lesson]

Money What it is and how it moves around? [Answer this question based on the video] Michael Quinones, NBCT www.socialstudiesguy.com

Describe/explain the following terms in your own words Money Currency Coins Banks Credit Unions FDIC Checking account Savings account Certificate of Deposit Great Depression

What is money? Something that has value Why? As legal tender it represents the “full faith and credit” of the United States When you possess money you have a promise of value by the government and people of the United States. Taking a look at U.S. paper money [federal reserve note] you see the phrase “THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE.” The money of the U.S. is accepted as the currency for much of the world.

Currency There are different types of money Currency is another way to refer to money or the most valuable item of trade In the United States it comes in two principal forms coins and paper Paper often has the highest value Coins are made of metal and have the lowest values

Banks Banks are where money is secured [kept safe] The first place money is dispersed is at banks. Banks earn profit by accepting your money as a deposit and charging interest on loans. Interest is a fee charged for lending money. Example: You borrow $10 from me and you must pay me back $11.

Banks After taking depositors’ accounts banks lend it out for more than they charge in interest [earning a profit] Different types of bank accounts include savings and checking. Savings accounts are intended for those who wish to earn more interest and not withdraw the money as often. Checking accounts are intended for those who need to pay bills using checks and spend the money often. Certificate of deposit are accounts that pay higher rates of interest than a savings or checking account but to receive the money you must not withdraw the money for a certain period of time [1-5 years]

Credit Unions Very similar to a bank They receive deposits and grant loans Principal difference is they do not seek a profit Often sponsored by group such as: Labor Unions, businesses and governments

FDIC What happens to your money if a bank is robbed? Is it gone? Each depositor’s account is guaranteed [insured] up to $250,000 A federally supported company called the Federal Deposit Insurance Corporation will protect each account owner’s money up to that amount for any reason

Reason/Need for the FDIC The U.S. Stock Markets “crashed” in 1929. This means the value of U.S. companies plummeted due to people speculating and inflating the value of stocks. Businesses and banks closed. People lost their jobs, banks did not allow depositors to withdraw money. Some people who lost everything jumped off roof tops and committed suicide in panic. The time period from 1929-1941 is called the Great Depression because the economy was pushed down

Content Frame _____________________ represents a promise of value from a government. Two of the principal forms of money include __________ and ___________. Banks earn money by __________ ____________________________________________________________ _______________________ and people deposit their money there because _________________________________________________. I would describe interest as ______________________________. I would open a savings account if _________________________________. People have checking accounts because ______________________________________. A certificate of deposit is _____________________________________ ________________________________________. The biggest difference between a bank and a credit union is ___________ _______________________________. The Great Depression was __________________________________________________________ _________________________ and resulted in the creation of the _________ which now protects _____________________________.

Sources http://www.covehurst.net/photos/new10.jpg http://www.wpclipart.com/money/bag_of_money.png http://www.lookingatbuildings.org.uk/img_hr/Manchester_Branch_Bank_Of_England.jpg http://www.greatestcities.com/0732pic/850/CP9850.jpg/Money_of_Poland.jpg http://www.lynchburgunited.com/Portals/French/WachoviaBOXLOGO.jpg http://www.smsefcu.com/images/SMSE%20Logo%201.jpg http://www.frederikabank.com/images/FDIC.jpg http://www.pattisonsign.com/site-psg/media/PattisonSign/Citibank%20Channel%202.jpg http://upload.wikimedia.org/wikipedia/commons/a/a8/US_Mint_seal.png