Banks, Credit and the Economy

This lesson presents a crash course in the relationship between money, banks, and lending in our economy. Students first learn the basics about money and banks. Then they then learn about banks’ role as lenders and find out why lending plays such a huge role in our economy. Students learn about the Federal Reserve, inflation, and the Fed’s role in regulating our economy. Finally, they learn the difference between loans that serve as investments and loans for things that decrease in value, as well as the ugly side of borrowing and lending.