Money & Banking
Discussion & Essay Questions
Available to teachers only as part of the Money & BankingTeacher Pass
Money & Banking Teacher Pass includes:
- Assignments & Activities
- Reading Quizzes
- Current Events & Pop Culture articles
- Discussion & Essay Questions
- Challenges & Opportunities
- Related Readings in Literature & History
Sample of Discussion & Essay Questions
- We are currently in a recession with high unemployment and low growth. The discount rate is at 0.22%. Does the Federal Reserve have any remaining tools to help stimulate the economy?
- Compare the tools used by the President, congress, and the Federal Reserve during the 2009-2010 period to the tools used during the Great Depression.
- Review the recessionary periods of the 1930s and the 1970s. Which does the current period resemble?
- Do you believe the Federal Reserve acts independently of political pressures? Why or why not?
- Does the United States still have enough credibility to use fiat money? Should it switch to another form of currency?
- Define at least three areas where monetary policy differs from fiscal policy. When would you use each?
- Describe the effects of the Fed’s interest-rate changes on the liquidity of banks and borrowing.
- What key forces drove gold to record prices in 2010?
- What forces would make you prefer gold to a house in the next five years?
- Do you think currency should be backed by gold? Should the gold standard still exist?
- Why don’t we have an oil standard rather than a gold standard when oil is clearly a more liquid commodity?
- Given that homes usually represent most of the net worth of families in this country, should mortgage interest be tax-deductible?
- Why is home-mortgage interest deductible while car-loan interest is not? What impact does this deduction have on the money supply?
- Think of ways to use monetary policy to tighten and then loosen the money supply?
- The new credit-card policy guards heavily against sub-prime borrowing. Whom does this hurt? Whom does this help?
- Is PayPal a device for stimulating or reducing liquidity in M2?
- How does doubling the tax on corporate dividends affect retired people? What does this do to the money supply and spending?