Summary: In this lesson, students will examine the Federal Reserve Act of 1913 and the establishment of the unique structure and functions of the Federal Reserve System. Students will describe how not having a central banking system or effective tools in place to promote economic growth and stability precipitated a national response and interpret economic events that necessitated the creation of the Federal Reserve System. Through analysis of primary sources and non-fiction text, students will apply critical thinking, reasoning and ideation skills. Both collaborative and individual activities are included, providing opportunities for students to develop team building, speaking and writing skills. Additionally, students will evaluate the costs and benefits of proposed changes to the Federal Reserve Act and rank the potential effectiveness of those changes within the context of current financial and economic infrastructures.
Overarching Questions:
- ECONOMICS: What is the proper role of government in the economy? (Especially with regard to economic crises, national defense/security, health and safety of the people, and economic development and practices.)
NJ Student Learning Standards for Social Studies:
- 6.1.12.EconNE.9.c: Explain how government can adjust taxes, interest rates, and spending and use other policies to restore the country’s economic health.
- 6.1.12.EconNE.9.d: Explain the interdependence of various parts of a market economy (i.e., private enterprise, government programs, and the Federal Reserve System).
Link to Lesson: An_Act_for_the_Ages_Lesson_FINAL.pdf (kansascityfed.org)