Lesson Plan

• Describe the functions of money and the various forms in which it is held.
• Explain how banks hold cash, securities, loans, deposits, and equity and act as financial intermediaries.
• Analyse the money‑creation process using the fractional‑reserve system and calculate the money multiplier.
• Evaluate the main sources of bank funding and the risks associated with each.
• Apply knowledge of monetary‑policy tools to assess their impact on bank operations.

• Projector and screen
• Whiteboard and markers
• Printed handout of a sample bank balance sheet
• Calculator worksheets for money‑multiplier problems
• PowerPoint slides covering key concepts
• Sticky notes for exit tickets

Begin with a quick poll: “Where does the money in your wallet actually come from?” Connect this to students’ prior knowledge of cash and bank accounts. Explain that today they will explore how banks hold cash, securities, loans, deposits and equity, and how this underpins money creation. Success will be measured by their ability to diagram a bank’s balance sheet and calculate the money multiplier.

1. Do‑now (5'): Students list different forms of money they use and share examples.
2. Mini‑lecture (10'): Present the functions of money and an overview of a bank’s balance sheet using slides.
3. Group activity (12'): Analyse a sample bank balance sheet, identify assets, liabilities, and funding sources.
4. Money‑creation simulation (10'): Complete a worksheet to calculate the money multiplier for given reserve ratios and discuss results.
5. Risks & policy discussion (8'): Review liquidity, credit, interest‑rate, and equity risks and link them to monetary‑policy tools.
6. Formative check (5'): Quick Kahoot quiz on key concepts.

Summarise how banks simultaneously hold assets and provide funding while creating money through fractional reserves. Ask each student to write one key takeaway on a sticky note as an exit ticket. For homework, assign a short problem set calculating multipliers for different reserve ratios and a reflection on how monetary‑policy tools could alter bank funding.