Students learn about banks and credit unions, identifying similarities and differences between the two types of financial institution. They also evaluate a local bank and credit union to determine which one would be better suited to their needs. (This is Part I of a two-part project.)
Students learn about the purpose of the reserve requirement, how money is "created" in the economy through fractional reserves, and how the Federal Reserve uses the reserve requirement and loans to correct economic instability.
Students will demonstrate understanding of the processes associated with banking by role- playing as customers, tellers, and guards.
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