Monday, February 8, 2010

How the Federal Reserve Works

Understanding the US Federal Reserve can be a very difficult task. (I have to refresh my memory before I teach it every year). Time has recently produced a short video that attempts to explain the functions of the Federal Reserve in simple terms. The video is just under four minutes in length.


Hat tip to Jeffery Hill for the video.

Applications for Education
Anyone that has tried to teach lessons on the US banking system knows the frustration that can come with trying to help students wrap their heads around the Federal Reserve System. This video doesn't cover it all, but it certainly could be helpful when used as a part of a larger lesson. The video may also give you some ideas for new approaches to explaining the Federal Reserve.

Here are some related items that may be of interest to you:
Kid's Economic Glossary
Saving Money in Plain English
The History of Credit Cards in the United States