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Education Resources


Fractional Reserve Banking Resources

Middle School

What Is the Federal Reserve?
In this Philadelphia Federal Reserve Bank lesson, students learn about fractional reserve banking through a simplified banking simulation. Students will examine bank deposits, loans, and reserves during this interactive lesson.

There's No Business Like Bank Business
This Kansas City Federal Reserve Bank lesson and its accompanying role play introduce students to the basics of banking in a fun, interactive way.

Focus on the Fed Grades 5–8
These lessons from the Kansas City Federal Reserve Bank include a hands-on activity on the role and functions of banks.

High School

Ask Dr. Econ
This resource of the San Francisco Federal Reserve Bank answers the question, What does a change in the reserve requirement ratio do to the money supply?

Banking Basics
This Boston Federal Reserve's publication covers all of the fundamental functions of the banking system.

The Case of the Gigantic $100,000 Bill
In this lesson from the Philadelphia Federal Reserve Bank, students participate in a demonstration of the money creation process using a $100,000 bill. The teacher traces on a board the expansions of the money supply caused by successive deposits and loans so students can follow the process. Students learn to calculate the upper bound of the money creation process using the simple money multiplier.

Focus on the FRB
These lessons from the Kansas City Federal Reserve Bank explain the Federal Reserve Bank and how it helps to control the growth of the U.S. money supply.

Everyday Economics
This series from the Federal Reserve Bank of Dallas explores various topics in economics including: money, international trade, entrepreneurism, globalization, and others.

Reserve Requirements
This web page of the Federal Reserve Board of Governors provides definitions related to fractional reserve banking and includes current requirements, historical data, and regulations.

What Does the Fed Do?
This lesson from the Philadelphia Federal Reserve Bank introduces students to fractional reserve banking through an interactive simulation of the process. Students will also learn about the Federal Reserve System's three basic functions.

What Really Caused the Great Depression?
In this lesson from the St. Louis Federal Reserve Bank's Great Depression Curriculum, students participate in a simulation of a bank run. The activity covers the concepts of bank reserves, bank failures, and bank panics.

Advanced High School and College

Ask Dr. Econ
This resource of the San Francisco Federal Reserve Bank answers questions about the money multiplier and its most recent impact on the money creation process.