E.6.2+Explain+the+composition+of+the+money+supply+of+the+United+States.



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=//Focus Question: What is the money supply of the United States?//=


 * Topics on the Page **
 * ** Money Supply **
 * **Videos on: U.S. monetary policy, the U.S. Federal Reserve, and money and finance**
 * **U.S. Money Circulation**
 * ** Janet Yellen **
 * ** Lesson Plans **

**Money Supply**
What is the Money Supply? Is it important?, from the Federal Reserve

A description of what the money supply is and various concepts associated with it can be found here.

This video from Khan Academy provides a quick and insightful definition of what the money supply is and how it works. >
 * Click here to watch a Crash Course Economics YouTube video that focuses onJanet Yellen, U.S. monetary policy, and the U.S. Federal Reserve.
 * Click here to watch another Crash Course Economics YouTube video that focuses on money and finance within the United States

**U.S. Money Circulation**

 * How Much Money Is In Circulation?**
 * **How does U.S. currency get into circulation?**



**Janet Yellen**
Click here to listen to an NPR podcast about Janet Yellen, the first woman to be the Chair of the United States Federal Reserve
 * Click here to read a New York Times article detailing Janet Yellen's legacy on the U.S. economy.



**Lesson Plans**



 * Click here for a lesson plan that focuses on the Federal Reserve System of the United States.
 * After the lesson students will be able to:
 * Define the money supply as currency and coin in circulation and balances held in checking accounts.
 * Describe how the money supply in circulation increases when banks make loans, and how it decreases when loans are paid off.
 * Discuss the purpose of reserve requirements.
 * Use the money multiplier to calculate potential money creation from a starting deposit.
 * Give reasons for the establishment of the Federal Reserve Bank and explain its three basic functions.