Economics (McConnell) AP Edition, 19th Edition

Chapter 31: Money, Banking, and Financial Institutions

The content of this chapter may be included on the AP* Macroeconomics exam.

After reading this chapter, you should be able to:

1. Identify and explain the functions of money and the components of the U.S. money supply.
2. Describe what "backs" the money supply, making us willing to accept it as payment.
3. Discuss the makeup of the Federal Reserve and its relationship to banks and thrifts.
4. Identify the functions and responsibilities of the Federal Reserve.
5. Identify and explain the main factors that contributed to the financial crisis of 2007-2008.
6. Discuss the actions of the U.S. Treasury and the Federal Reserve that helped keep the banking and financial crisis of 2007-2008 from worsening.
7. Identify the main subsets of the financial services industry in the United States and provide examples of some firms in each category.

AP Chapter 31 Introduction (10.0K)