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Interest Rates Teacher Resources
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Follow the Federal Open Market Committee announcements and newspapers to look for stories about the Federal Reserve actions that target interest rates and boost spending and employment in the United States. This lesson incorporates math, economics, and current events in a real world context.
Students explore the Federal Reserve System. In this Economics lesson, students investigate the Fed’s role in formulating money policy through a simulation in which students become members of the board of directors of a Reserve Bank. Students explore how the directors of Reserve Banks contribute to interest rate setting decisions.
Students analyze the advantages of regular saving and how savings grow with compounding. After reading the story "The Hundred Penny Box", students define the terms "interest," "interest rate," and "compounding." Through several activities, the students learn how money is compounded through investment.
Young scholars examine newspaper articles dealing with the topic of interest rates. Using the text, they discuss the Federal Reserve's decisions to either raise or lower interest rates and its effect on unemployment. They analyze the issues surrounding major data announcements.
Students explore the concept of interest. In this interest instructional activity, students shop for cars and determine the payments and interest rates for various cars. Students use various websites to research cars and interest rates for car loans. Students use auto loan calculators to determine payments for the cars they chose.
Students examine the role interest plays in daily spending and saving decisions. They identify interest rates for various savings plans and loans. They visit a bank Website to survey banking terms and products. Students calculate how long it would take to pay off a $2,000 loan on a credit card charging 18.5% APR and role-play as newspape columnists answering consumer questions.
A good accompaniment to an economics lesson, this presentation explores the aggregate expenditures model, detailing the relationship between consumption and saving using graphs and charts. Additional information includes investments and interest rates, as well as the global perspective on consumption. Viewers will appreciate the easy-to-understand bullet points, and lecturers will appreciate the handy navigational tool and list of relevant terminology.
Students read excerpts from a Washington Post article about a reduction in short term interest rates in 1998. They identify sections in it dealing with monetary policy. In another article, they compare the federal funds rate with other interest rates and create a graph illustrating what would happen to aggregate output if aggregate demand is restrained.