Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
LESSON PLAN TEMPLATE PART A: PRE-LESSON PREPARATION Your Name: Jennifer Ferris Course title: 8th Grade United States History Unit title: Money, Banking, and Taxes Unit questions: 1. Why does money have value? 2. How do the different sectors of the economy interact? 3. How does the flow of money in the economy affect spending and production? Lesson Title and Number: Lesson 2: The Federal Reserve and Monetary Policy Materials to be used: SmartBoard, Lesson 2 PowerPoint, circular flow quiz, “Federal Reserve and You” video, video questions handout, large Post-Its, small Post-Its, “Banking and Monetary Policy” booklets, “Banking and Monetary Policy” graphic organizer, “Making Money in Middlevillage” PowerPoint, simulation handout, two articles on electronic currency, persuasive writing/electronic currency handout Lesson Assessment Charts LIST EACH LESSON QUESTION FOR THIS LESSON. 1. How does the Federal Reserve use monetary policy to influence the money supply? 2. How does the creation of money affect production, spending, and saving in the economy? 3. What are the advantages and disadvantages of using electronic currency? WHERE WAS THIS QUESTION ADDRESSED IN THIS LESSON? “The Federal Reserve and You” video questions, categorizing activity, “Making Money in Middlevillage” simulation, simulation reflection “The Federal Reserve and You” video questions, “Making Money in Middlevillage” simulation, simulation reflection Persuasive writing activity on electronic currency LIST EACH LESSON OBJECTIVE FOR THIS LESSON. 1. Students will be able to explain how banks create money. 2. Students will analyze how the creation of money affects all sectors of the economy. 3. Students will create and defend an argument based on the lesson topic. HOW WAS THIS OBJECTIVE MET IN THIS LESSON? “Making Money in Middlevillage” simulation, simulation reflection “The Federal Reserve and You” video questions, “Making Money in Middlevillage” simulation Persuasive writing activity on elecronic currency LIST EACH NCSS STANDARD IN HOW DID YOUR STUDENTS MEET THIS THIS LESSON STANDARD? VII: Production, Distribution and Day 1: circular flow quiz, “Federal Consumption Reserve and You” video questions, Assist learners to see the categorizing activity Day 2: “Making relationships among the various Money in Middlevillage” simulation economic institutions that Day 2: “Making Money in Middlevillage” compromise economic systems such simulation, persuasive writing about as households, businesses, banks, electronic currency government agencies, labor unions and corporations Guide learner analysis of the role of specialization and exchange in economic processes VIII: Science, Technology, and Society Day 2: persuasive writing about electronic Enable learners to identify, currency describe, and examine both current Day 2: persuasive writing about electronic and historical examples of the currency interaction and interdependence of science, technology, and society in a variety of cultural settings Encourage learners to formulate strategies and develop policy proposals for influencing public discussions associated with science/technology-related issues LIST EACH DELAWARE STANDARD IN THIS LESSON Economics Standard Two 6-8a: Students will analyze the role of money and banking in the economy, and the ways in which government taxes and spending affect the functioning of market economies. HOW DID YOUR STUDENTS MEET THIS STANDARD? Students gained an understanding of the role of the Federal Reserve in conducting monetary policy through the “Fed” video questions, Federal Reserve reading graphic organizer, and “Making Money in Middlevillage” simulation. IF APPLICABLE, LIST THE COMMON CORE IN THIS LESSON HOW DID YOUR STUDENTS MEET THIS STANDARD? Simulation reflection – students will create an argument as to why an increase in the money supply is beneficial. Persuasive writing assignment – students will create and defend an argument about whether or not paper currency should become obsolete Writing Standard I. TEXT TYPES AND PURPOSES 1. Write arguments to support claims in an analysis of substantive topics or texts using valid reasoning and relevant and sufficient evidence PART B: DAILY LESSON (one to three days) The Federal Reserve and Monetary Policy Day 1 Lesson Focus (3 minutes) Remind students that last class, we discussed how the economy as a whole functions. There are four sectors of the economy that money flows through. Ask for student volunteers to name the four sectors of the economy. (Students should respond with “government,” “households,” “banks and financial institutions,” and “businesses”.) Tell students that these four sectors are interdependent. Ask for a student volunteer to define “interdependence.” (Student should respond by saying that all parts of the economy depend on each other, and decisions made by consumers, producers, and government impact a nation’s standard of living. On the SmartBoard, project the following lesson question: o How does the Federal Reserve use monetary policy to influence the money supply? Tell students that we will be focusing on this question today, and they will be able to answer it by the end of class. Intro Activity (5 minutes) On the SmartBoard, project the following quote: o “Money is to an economy like oil is to an engine.” – Barbara Emery Students will have three minutes to respond to the following prompt: o Based on what you know about money, what do you think this quote means? Answers will then be discussed as a class. Tell students that today we will be exploring what the Federal Reserve is, and how it is a crucial piece of that “engine.” Remind students that before they get into today’s lesson, they have a brief quiz on the circular flow. Developmental Section (65 minutes) Circular Flow Quiz (7 minutes) o Students will have seven minutes to complete the quiz. o The quiz is identical to their handout on the circular flow from Lesson 1. A word bank is provided, and students must put the correct words on their correct spots on the circular flow model. o This will be counted for a quiz grade, and will be worth twelve points (one for each arrow on the circular flow model.) o Collect quizzes, and tell students that they will be returned by next class. Think-Pair-Share (5 minutes) o Give students three minutes to brainstorm what they know about banks. o Students will then share what they have with a partner for two minutes. o Bring the class back together, and ask for a few student volunteers to share what they know about banks. o Ask students what they think the purpose of a bank in the economy is. Tell them to discuss this question with a partner before the entire class discusses it. o Bring the class back together, and ask for a few student volunteers to share their answers. o Flip to the next slide, and tell students that the purpose of a bank is to transfer money from savers to borrowers in the form of loans. Mini-lecture on Federal Reserve (5 minutes) o Ask students to name a few banks they know of or might have an account with. Follow that up with, “How do you know your money is safe there?” o Tell students that today, we take it for granted that our assets are safe in banks, but about a century ago, this was not the case. o Tell students that there was a financial crisis at the turn of the twentieth century that caused many banks to fail. People did not trust that their money was safe at the bank, so “runs” on the banks occurred. Many savers withdrew their money from the banks, leaving them with nothing to lend, and the banks failed. o Millionaire J.P. Morgan ultimately rescued the economy, giving millions to the U.S. government. o The Panic of 1907 made it clear that something had to be done to promote economic stability and prevent a situation like this from happening again. The Federal Reserve Act was passed in 1913, which established the Federal Reserve, or the central bank of the United States. o Tell students that we will now watch a video on what exactly the Federal Reserve is and what it does. “The Federal Reserve and You” Video (23 minutes) o Distribute video questions handout. On the reverse side of the handout, there is a grid with each letter of the alphabet in it. o Direct students’ attention to the large Post-It notes placed around the room. They read: “Payments System,” “Supervision and Regulation of Banks,” and “Monetary Policy.” o Tell students that as they watch the video, they should identify as many key concepts/ideas pertaining to these topics as possible, writing them down in the box that corresponds with their first letter. o Have students preview the two key questions for the video, which they will answer after the video is finished: What are the goals of the Federal Reserve? How does the Federal Reserve conduct monetary policy? o Watch the video. o Give students a few minutes to answer the two key questions. Then, review them as a class. o Explain to students that the goals of the Federal Reserve are to keep prices stable and to promote maximum employment. It does this through three means: regulating the payments system, supervising and regulating the banks, and conducting monetary policy. Categorizing Activity (20 minutes) o Give each student five small Post-It notes. Tell them to choose the five concepts they wrote down that they thought were most important, and to write down one key concept on each small Post-It. o Tell students to place each small Post-It on the large Post-It they think it best corresponds with. o Once students have finished categorizing their concepts, the teacher will read the small Post-Its in each category to the class. Some concepts may not fit in a category that the student has chosen. When coming across these, ask the class which category they think it fits best in, and rearrange the small Post-Its as necessary. o After the small Post-Its have been put in their correct place, tell students to walk around the room and look at the collection of words in each category. Based on this, they are to write a definition of the payments system, supervision and regulation of banks, and monetary policy at the bottom of their video questions handout. o Students will then return to their seats. Ask for a student volunteer or two to share their definitions of each concept. o Give students the definitions of payments system, supervision and regulation of banks, and monetary policy. These will be projected on the SmartBoard. Students should copy them down on their video notes. This handout will be kept in the notebook as part of students’ Marking Period 3 notebook check. “Money, Banking, and Monetary Policy” reading (12 minutes) o Each student will receive a copy of the Federal Reserve’s publication of “Money, Banking, and Monetary Policy.” Students will also receive a graphic organizer to accompany the reading. On the reverse side of the graphic organizer is the simulation activity for next class, so students should put it in a safe place at the end of class. o The graphic organizer is divided into five sections: “What is money?,” “The Fed’s Role,” “How Banks Create Money,” “Monetary Policy and the Economy,” and “The Fight Against Inflation.” In the first column, students will record something they already knew about the topic. In the second column, students will record important points from the reading. o Students may work with a partner on this activity, but each student needs to complete a graphic organizer individually. o The teacher will monitor the room to ensure that students are completing it. Students will be told that the graphic organizer will be collected next class along with the simulation activity. Wrap Up/Closure/Culminating Experience (5 minutes) The students will respond to the following exit slip prompt: o 3 things you learned about the Federal Reserve o 2 questions you still have o 1 thing you found interesting The exit slip will be handed in for classwork credit. Day 2 Lesson Focus (3 minutes) Remind students that in the first part of the lesson, we discussed what the purpose of the Federal Reserve is, and how it influences the economy’s money supply. Ask students what the two goals of the Federal Reserve are. Students should respond with “to keep prices stable” and “to maximize employment.” Remind students that the Federal Reserve influences the money supply by buying and selling government securities. Ask students, “Which rate is the Federal Reserve influencing when it does this?” Students should respond with “the interest rate.” Project the following lesson questions on the SmartBoard: o How does the creation of money affect the production, spending, and saving in the economy? o Why are banks necessary for economic growth? Tell students that they will be able to answer these questions by the end of the lesson. We will first discuss how banks create money, and how that affects the whole economy. Developmental section ( minutes) Do Now (7 minutes) o Students will be presented with the following scenario, and will determine how the Federal Reserve can combat the economic situation: The attacks of September 11, 2001 took the lives of almost 3,000 people and shocked the nation. After the attacks, economic activity in the U.S. significantly declined. Was this a recession or inflation? What could the Fed do to try to stabilize the economy? o Explain to students that the 9-11 attacks exacerbated a recession. Economic activity declined because people were afraid to travel or even do daily activities. The New York Stock Exchange was closed for three days. o In response, the Fed dramatically increased the money supply and lowered the federal funds rate to try to stimulate economic activity. Ask students what a greater money supply and lower interest rates would lead to. (Students should say that banks will give out more loans.) o Tell students that today we will look at how loans stimulate economic growth and lead to the creation of more money. In the next activity, we will see how this process works. “Making Money in Middlevillage” simulation (25 minutes) o Students should refer to the reverse side of the “Money, Banking, and Monetary Policy” graphic organizer for this activity. o The teacher will guide the class through a simulation that shows how banks create money through loans. The simulation has an accompanying PowerPoint. o As the simulation progresses, the teacher will guide students through simple mathematic equations that demonstrate how an initial loan of $10,000 eventually becomes $100,000 in the economy. o Students will hand the worksheet in for a classwork grade. This grade includes the “Money, Banking, and Monetary Policy” graphic organizer and the simulation. Simulation reflection (7 minutes) o Students will respond to the following writing prompt: Mr. Sampson, the local convenience store owner in Middlevillage, is upset by today’s headline – “Federal Reserve Chairman Will Seek to Increase the Money Supply.” How would you explain to Mr. Sampson that an increase in the money supply by the Federal Reserve may help him? o Students should respond to the prompt in 4-5 sentences. Transition to electronic currency/anticipatory activity (5 minutes) o For this activity, students will refer to a popular Internet image (“meme”) that has been modified for the lesson. The image features Morpheus, a character from The Matrix movies, saying: “What if I told you that banks create money out of nothing by typing numbers into a computer?” o In a think-pair-share format, students will have time to consider the following question individually: “Based on what you know about how banks create money, what do you think this quote means?” o Students will then share their ideas with a partner before the whole class discusses it. o Tell students that money is transferred between financial institutions largely through computers. This is known as electronic funds transfer, a transaction conducted with electronic money. Mini-lecture on history of electronic money (5 minutes) o Distribute “The Debate on Electronic Money” handout. o Students should copy the definition of electronic money on the PowerPoint. Ask a student volunteer or two to rephrase the definition in their own words. o Today, all transactions between the Federal Reserve and banks are done electronically through a system called FedWire. Additionally, only eight percent of the world’s money is in physical cash form. o Western Union developed this system for electronic transfer in 1860. It was done through a telegraph. The Federal Reserve adopted this system in 1918. Clerks would change numbers in their books accordingly, and there was no physical transfer of money, much like how electronic transactions occur today. o In 1950, the first credit card was available to consumers, called the Diners Club. It no longer exists today, but was purchased by Discover Card. o The Federal Reserve established the automated clearinghouse system (ACH) in 1972 as a way to expedite check processing. Financial institutions no longer had to receive physical checks in order to make transactions. o By the early 1990s, nearly all world banking systems relied mainly on electronic funds transfer. o While banks had the ability to electronically transfer funds for decades, these services were not available to the public until the early 1990s. America On-line was established in 1992, which revolutionized the way that data was sent between individuals and institutions. By 1994, some take-out food vendors offered Internet pay services. Amazon was established in 1995, marking the birth of the online shopping market. PayPal was established three years later. o Tell students that while electronic currency is widely used and accepted, there is still a debate as to whether or not it should replace cash. Some people see electronic currency as the “future of money,” while others fear it could have potentially adverse effects on the global economy. o Ask students to brainstorm a few ideas for either side of the debate based on what they know about monetary policy, money supply, and inflation. Students will have three minutes to brainstorm before the entire class discusses their ideas. Persuasive writing activity (25 minutes) o Extrapolating information from article (15 minutes) Students will receive one of two articles: “Pros and Cons of Paper Money” or “The Pros and Cons of Electronic Money.” Students will read the article individually and identify the arguments the author provides for and against either paper money or electronic money (emoney). Students will complete the top half of the article graphic organizer on the “The Debate on Electronic Money” handout. Students will then discuss their findings with a partner; each student is to be the “expert” on advantages and disadvantages of the type of currency discussed in their article. While discussing the articles with a partner, students will complete the bottom half of the graphic organizer. Students will then have pros and cons listed for both paper money and e-money. Review the graphic organizer as a class. o Scaffolded writing activity (10 minutes) Students will weigh the pros and cons of each type of currency for themselves. They will then decide on their position on the issue based on the evidence presented in the two articles. Students will then identify three arguments to support their view and provide evidence to back them up. Students will also identify two counter-arguments against their view, and provide brief rebuttals. Now that they have finished identifying their position and arguments, students will compose a thesis they would use in writing a persuasive letter to the government explaining their view. If time does not allow for students to complete the assignment, it will be assigned for homework. Wrap up/Closure/Culminating Experience (5 minutes) Students will draw a doodle representing how they visualize how banks create money. Students will also provide an explanation of why creating money is important to economic growth. This will be handed in for classwork credit.