Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: functions of commercial banks: providing deposit accounts (demand deposit account, savings account)
Learning Objective/s:
  • Describe the key features of demand deposit and savings accounts.
  • Explain how each type of deposit account benefits depositors and banks.
  • Analyze the role of deposit accounts in the fractional‑reserve money creation process.
  • Compare liquidity and interest characteristics of DDAs and savings accounts.
  • Apply the reserve‑ratio formula to calculate potential money‑supply expansion from a deposit.
Materials Needed:
  • Projector or interactive whiteboard
  • Slide deck summarizing account features and comparison table
  • Handout with a deposit‑account comparison chart
  • Calculator worksheets for reserve‑ratio calculations
  • Whiteboard and markers for class discussion
  • Optional short video clip on money creation
 Introduction:
Begin with a quick poll: “Where do you keep most of your money?” This activates prior knowledge of personal banking. Briefly outline that today’s lesson will explore how demand deposit and savings accounts work and why they matter to both customers and banks. By the end, students will be able to describe their features, compare them, and explain their role in money creation.
Lesson Structure:
  1. Do‑Now (5’) – Students list types of bank accounts they know on sticky notes; share examples.
  2. Mini‑lecture (10’) – Present key features and benefits of demand deposit accounts using slides.
  3. Mini‑lecture (10’) – Present features and benefits of savings accounts; highlight differences.
  4. Guided comparison activity (10’) – In pairs, complete a comparison chart (liquidity, interest, typical use, access tools, bank’s role).
  5. Money‑creation demonstration (10’) – Walk through the reserve‑ratio formula with a calculator worksheet; illustrate how deposits expand the money supply.
  6. Check for understanding (5’) – Quick quiz (Kahoot or exit ticket) with three concept questions.
Conclusion:
Summarise that deposit accounts provide liquidity for users and funding for banks, and through fractional reserves they help create money. Ask students to write one sentence on how a savings account differs from a demand deposit account as an exit ticket. For homework, assign a short problem set calculating money‑supply changes from given deposits and reserve ratios.