1. Institutions, the Fed, FDIC and NCUA

2. Journal 3.2
OBJECTIVE
Students will be able to…
Explain the role of the Federal Reserve, the FDIC, and the NCUA.
Compare the 5 financial institutions and their roles
AGENDA
Poster Presentations
Banking Simulation
Terms
Exit Slip
Write a 4 sentence argument about why your week is going better than Mr. Bird’s

3. What is Money Management
Unit 3 Plan
Terms:
Principle- the original amount of money contributed to an investment
Inflation- the rate at which the value of currency changes. If inflation is positive, the value of the dollar goes down.

4. Poster Presentations Instructions:
Get back into your groups that you made the posters in
Take 4 minutes to review the information that you found for your institution and prepare a 3 minute presentation to relate that information to the class

5. Banks

6. Credit Unions

7. Brokerage Firms

8. Insurance Companies

9. Loan Agencies

10. Turn and Talk Grab a sheet of paper and a partner!
Write both your names on the paper
Answer the following questions in at least 2 sentences. You have 200 seconds (roughly 2.5 minutes) for each question!
You’ll turn this in after the questions

11. What is the purpose of a bank? Why put money in a bank?

12. How does a bank make money?

13. How does the bank decide if it should give you a loan?

14. What happens if the bank doesn’t have enough money to pay you back?

15. Banking Simulation
Savings- Putting money aside for future consumption. Used to protect the principle.
Interest- Money received as payment for a loan. Meant to cover inflation and make a profit
Bank runs- When a bank couldn’t pay back the principle people would rush to other banks to try and get their money. Crashed the system.

16. What does the system look like?
Reserves- The amount of money a bank holds onto, in order to allow its patrons withdraw funds
Money Flow Activity

17. The Federal Reserve “The Bank’s Bank” a.k.a. “The Fed”
Determines the interest rate
Influences the amount of money in circulation through treasury bonds

18. The FDIC Federal Deposit Insurance Corporation
Insures up to $100,000 of your account
Why would they make this?
Stopped runs on the bank

19. The NCUA The National Credit Union Association
The Fed for credit unions

20. Exit Slip Give me a definition (your own words) for the following…
The Federal Reserve
The FDIC
The NCUA