1. 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]

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

3. 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

4. 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.

5. 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

6. 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.

7. 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]

8. 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

9. 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

10. 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 is called the Great Depression because the economy was pushed down

11. 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 _____________________________.

12. Sources http://www.covehurst.net/photos/new10.jpg