Unit 9: Functions of Money


What’s in This Chapter? Is money, or the love of money, the root of all evil? Should we eliminate money? If we eliminate money, will all evil disappear? If the answer is no, then money must not be the root of all evil. If...

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Section 1: Functions of Money

Is Money the Root of All Evil? Is money (or the love of money) the root of all evil? Some people claim this to be true. Would people still commit crimes in an economy without money? The answer is “yes”. Instead of...

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Section 2: Money Supply Measures

Money in Circulation In the United States, the Federal Reserve System and its twelve central banks are responsible for the circulation of money. In most other countries, a single central bank controls the amount of money in...

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Section 3: The United States Banking System

The Federal Reserve System The Federal Reserve (the Fed) System in the United States is a system of federal overseeing agencies, committees, and banks. The system was created in 1913, and its original purpose was for the Fed to...

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Section 6: The Process of Money Creation

Changes in the Nation’s Money Supply Let’s assume that banks hold on to 20% of all deposits. This means that a new deposit of $1,000 will allow a bank to loan out $800. This $800 will be spent, then received by...

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Test Your Knowledge!

  Time limit: 0 Quiz-summary 0 of 10 questions completed Questions: 1 2 3 4 5 6 7 8 9 10 Information This is a ten question multiple-choice quiz covering the material in this Unit. I hope you do well! You have already...

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