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1. What is money?
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What: Money
How: Enquiry through research
Why: Money has a powerful influence in the modern world and some would say, is the root of all evil today???
How: Enquiry through research
Why: Money has a powerful influence in the modern world and some would say, is the root of all evil today???
INTRODUCTION: Money is necessary for the operation of trade, markets and for specialization to occur. Without Money far less trading would happen as the transaction cost of bartering would be too great. So what is money? What has been used as money in the past and what makes good money? Who controls the supply of money and how is it regulated? In this topic the answers to these questions will be focused in on used contemporary and historical examples. To begin watch the two videos below and take notes. You only need to watch the first 5 minutes of the second video.
ACTIVITY 1:
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ACTIVITY2: Using all of the content between pages ... to.... create an infographic poster to explain some key information about money:
You have 45 minutes to work on the infographic in lesson and you should complete the infographic poster for home work. Below you will find questions to help you structure your infographic and websites that will help you create one:
You have 45 minutes to work on the infographic in lesson and you should complete the infographic poster for home work. Below you will find questions to help you structure your infographic and websites that will help you create one:
1.: What is money?
2. What would the economy be like without money?
3. What are the functions of money, explain each?
4. What has been used in the past as money, give examples?
5. What are the qualities/characteristics of good money, use examples from history to explain whether these were good money?
6. Where does the supply of money come from and why does it need regulating?
2. What would the economy be like without money?
3. What are the functions of money, explain each?
4. What has been used in the past as money, give examples?
5. What are the qualities/characteristics of good money, use examples from history to explain whether these were good money?
6. Where does the supply of money come from and why does it need regulating?
| what_is_money_infographic.docx |
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WORD: You can also use Word and the preloaded ICONS to create an infographic. It may be a little fiddly, but you can use text boxes to help you to arrange the text and icons.
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ACTIVITY 3: Complete the following exam style questions in your exercise books:
| money_and_banking_16.pdf |
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ACTIVITY 4: Below are different financial institutions that are commonly referred to as banks, research each type of 'bank' and explain the services they offer and how they are similar and different to a 'High Street' Commercial Bank.
1. Commercial Banks
| different_financial_institutions.docx |
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Credit Union
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Mutual Societies
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Investment Banks
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Islamic Banks
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Central Bank
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2. The stock exchange |
WHAT: The stock market
HOW: Create a spreadsheet in EXCEL or NUMBERS for a stock portfolio.
WHY: The PLC, Public Limited Company, Limited Company or Corporation is in some ways the most successful creation by humans in the world of business. It has allowed firms to achieve scale, share risk and reward, and meant that business ownership is not restricted to a few entrepreneurs. The stocks, equities or shares (all the same thing) are initially offered by firms and bought and traded between individuals on an equities or stock market.
HOW: Create a spreadsheet in EXCEL or NUMBERS for a stock portfolio.
WHY: The PLC, Public Limited Company, Limited Company or Corporation is in some ways the most successful creation by humans in the world of business. It has allowed firms to achieve scale, share risk and reward, and meant that business ownership is not restricted to a few entrepreneurs. The stocks, equities or shares (all the same thing) are initially offered by firms and bought and traded between individuals on an equities or stock market.
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KEY TERMS:
PLC, Limited Company, Corporation Equity/Share/Stock Initial offering/Flotation Share price Dividend Market capitalization Bull Market Bear Market |
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Activity 1: Watch the following clip and make notes on the stock market. You should be prepared to create a short timeline for Starbucks from 1990 to 2020 to follow the major activity of its stock. Then take notes from the textbook page 200 in the third edition on joint stock or limited company.
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Activity 2: Follow the lifecycle of a corporation from startup, to initial offering, to fully maturity and ending in administration and bankruptcy for some of these famous companies and corporations.
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Activity 3: FUND MANAGER CHALLENGE: In this activity you and your partner are going to take on the job of a fund manager for a group of investors (mutual fund). Your teacher will tell you how a mutual fund works and the different reasons why investors will put money into a mutual fund. Your challenge is to grow the size of the fund over the course of the next two weeks leading up to half-term. You will check in to your fund from time to time and you can make changes to it known as 'trades'. You should ensure that you research the share/equity carefully to see whether it has potential to see growth over the immediate future. You should buy a minimum of 10 stocks to ensure that your portfolio is diverse and a maximum of 15 to ensure that you are able to research and track them effectively. Your teacher will send you a link so that you are able to store your mutual fund and a leaderboard can be created. There will be a small prize for the 'Mutual Fund' with the greatest total return prior to half-term.
Your buying power is $10,000, remember this can be scaled up if you would like to imagine yourself as a 'Wolf of Wall Street for example add'-3 zero's and it's 10 million, 6 zeros and it's a cool $10 billion... |
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| economics_stock_portfolio.numbers |
| IF YOU AREN'T ABLE TO USE NUMBERS |
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SOME ADVICE ON INVESTING IN THE STOCK MARKET...
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ACTIVITY 4: Complete the cross word on financial intermediaries (pg. 144 3rd ed.)
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| crossword.pdf |
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3. hOUSEHOLD - Consumer expenditure |
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Spending
Saving Borrowing Utility Disposable income Propensity to consume and save Consumer spending patterns |
- Analyse the different motives for spending, saving and borrowing
- Analyse the effects changes in income, the rate of interest and confidence can have on the spending, saving and borrowing decisions of different households over time.
ACTIVITY ONE HOUSEHOLDS: Householders are owners of factors of production and also consumers of goods and services. They earn money from factor rewards or payments to buy the goods and services they want and need but cannot or choose not to produce themselves. you teacher will draw a simplified circular flow of in income model on the board, you should copy this down and illustrate this in your exercise book.
ACTIVITY TWO: WHAT IS DISPOSABLE INCOME? For 5 OECD countries draw a line graph for disposable income from 1995 to 2018. Use 5 year intervals and $US. You can either do this in a spread sheet or on graph paper. You should include the country of Greece in your 5 OECD countries. What happened to disposable income around 2008 to 2010? Why? Find some more data to explain this?
Household accounts - Household disposable income - OECD Data
Disposable income is closest to the concept of income as generally understood in economics. Household disposable income measures the income of households (wages and salaries, self-employed income, income from unincorporated enterprises, social benefits, etc.), after taking into account net interest and dividends received and the payment of taxes and social contributions.
WHY DO PEOPLE CONSUME GOODS AND SERVICES?:
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Discuss: How typical is US Household expenditure compared to the rest of the US? Look at the statistical report on consumer expenditure from the Bureau of Labour Statistics. Are there any significant differences with national spending patterns?
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ACTIVITY THREE SPENDING PATTERNS: Complete activity 3.8 on page 148 of the 3rd edition. Make sure that you write your answers in full sentences. You should then complete the handout below on consumer spending patterns and stick this in your exercise book.
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| analysing_consumer_spending_patterns.docx |
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4. HOUSEHOLDS SAVINGS AND DEBT INTRODUCTION: In lesson 2 you learnt about different financial intermediaries that exist in the economy. In this lesson you will consider how households are both savers and borrowers and the implications this has for households. You will also consider longer-terms patterns of household indebtedness and consider how this can have both positive and negative impacts for the whole economy. You will also consider the historical example of increased household indebtedness and how this led to the '2008 Credit-Crunch'.
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Activity Note taking skills: Take notes under the following headings from pages 154-159. You should aim to turn each heading into a maximum of 3 ideas (bullet points).
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WHAT DOES SECURES OUR FINANCIAL SYSTEM, AND WHAT DO THE VAULTS OF THE BANK OF ENGLAND LOOK LIKE?
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WHAT DOES A 'RUN ON A BANK' LOOK LIKE?
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THE 2008 FINANCIAL CRISIS
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Activity Research Task: Watch the video below on the 2008 Financial Crisis. Can you explain:
1.) What were the causes of the 2008 financial crisis? 2.) What impacts did it have on the US and global economy? 3. How did the government respond to the crisis? |
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Activity: Now that you have learnt about the causes, consequences and response of world governments to the financial crisis of 2008 you will author a short comic strip that cover this topic for younger students to understand! I have provided you with an example of what can be achieved through the software Pixton Edu
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Activity: Complete the exam style questions on households. Important: use ideas from the text and when you are answering questions that require you to explain - use the word 'because' at least once, this will ensure that you are actually 'explaining'.
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| households_17.pdf |
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Activity: Complete the crossword on page 161 of the Third edition as a review of your learning.
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