Young scholars learn about the purpose of the reserve requirement, how money is "created" in the economy through fractional reserves, and how the Federal Reserve uses the reserve requirement and loans to correct economic instability.

The value of money is determined by how much (or how little) of it is in circulation. But who makes that decision, and how does their choice affect the economy at large? Doug Levinson takes a trip into the United States Federal Reserve,...

When you examine economic statistics, it's crucial to distinguish between nominal and real measurements so you know whether or not inflation has distorted a given statistic. Learn how to adjust GDP numbers for inflation in this article....

By the end of this section, you will be able to do the following: Use the Consumer Price Index (CPI) to calculate U.S. inflation rates; Identify several ways the Bureau of Labor Statistics avoids biases in the CPI; Differentiate among...

'The Wizard of Oz' is perhaps the most popular film ever made. Generations of families have enjoyed this classic tale of Dorothy's struggle to return home from a faraway land. What is not well known, however, is that 'The Wonderful...

Students will describe the purpose of a price index, and how it is calculated. Then students will describe the weaknesses of the CPI, and interpret CPI data as a measure of economic health. Finally, students will identify who is harmed...

How does your family celebrate Thanksgiving? Are you joined by friends and/or family for a special feast? What do you eat? Most American families celebrate Thanksgiving by cooking turkey. According to EatTurkey.com, approx. 88 percent of...

Young scholars will define opportunity cost as they list various career choices and salaries, and calculate future value of money.

Students learn the meaning and measurement of six important economic indicators and use the St. Louis Federal Reserve Bank National Economic Trends website to assess the current state of the economy.

Governments and other financial organizations are constantly measuring trends in the economy to try to predict what will happen next. The ability to successfully predict economic trends has a profound effect on whether or not a business...

Each of us seek to make wise investment decisions that will make our money grow. Unfortunately, we cannot predict the future, but the past can give us a window to understanding the risks and rewards of investing in the stock market. This...