General Information

Title: The Federal Reserve Banks

Subject Area: Social Studies/Economics

SOL 7.7 - Virginia Standards of Learning

The students will describe the role of the governments in the United States economy, with emphasis on:

• provision of public goods and services;
• protection of consumer rights, contracts, and property rights;
• the impact of government taxation, borrowing, and spending on individuals and on the production and distribution of goods and services; and
• the role of the Federal Reserve System and the impact of monetary policy on the money supply and interest rates.

Grade Level: 8

Lesson Topic: The Federal Reserve System

Descriptive Overview: Students will complete a computer model of the organization of the Federal Reserve System. By clicking on the name of the organization, the role of the system will be identified. Students will then be asked to locate the Federal Reserve Districts on a map of the United States

Advantages of Medium: Students will be able to directly interact with the given information. This could be used as a review for a unit test or as a distinct lesson in this unit.

Lesson Specifics

Lesson Objectives/Goals: The student will:

• identify the organization and roles of the Federal Reserve System.
• locate the United States Federal Reserve Banks on a map.

Assumed Skills or Prerequisite Skills: Students should be familiar with unit vocabulary

Learning Environment:

• Students could work individually or in pairs to complete this simulation.
• In a computer lab setting, students may need to print the charts to familiarize themselves with the content

Instructional Set

• Teachers should review the history of banking and the problems that early Americans faced with the system.
• Teachers should review the laws that govern the banking system.
• Students should be asked anticipatory questions that query their interest.

Gaining Attention: Not applicable

Orienting the Lesson: Not applicable

Stimulating Recall of Prerequisites: Not applicable

Key Questions:

1. What bank does the government use?
2. Who organizes the banks?
3. Why is it necessary for all banks to follow the same guidelines for loans?
4. What are the parts of the Federal Reserve System?

Teaching Strategies

1. Give students a brief history of the Federal Reserve.http://kids.infoplease.lycos.com/ipka/A0801059.html
2. Describe each part of the Federal Reserve System and their roles:

   
   Flowchart of the Federal Reserve System
   Board of Governors

3. Students should take notes to refer to for other activities in this unit.
4. Describe the location of Federal Reserve Banks throughout the United States.
5. Use the map of Federal Reserve Districts to answer questions about the districts.
6. Discuss the map questions orally or in pairs.
7. Summarize the lesson by reviewing the parts of the Federal Reserve System and describing how the Federal Reserve effects consumers.

Terminology/Vocabulary:

Monetary Policy
Federal Reserve System
Reserve Requirement

Practice:

• Students will highlight different areas of the chart to discover the roles of the reserve system.
• Students will analyze the relationship between bank and the reserve system.

Assessment: Not applicable

Enhancements

• Students could create a HyperStudio stack on the Federal Reserve System.
• Students could determine the reserve ratio for a given bank given all of the appropriate information.
• Students could write a paper describing how the banking system has improved or hindered the growth of the industry.
• Students could perform a debate on the effectiveness of the reserve system while opponents try to reduce the guidelines.

Extensions

Not applicable