Section 2 — How Money Works 7 review blocks

Session 8: Anchor terms by session

This is not new vocabulary — it is a memory map for what you should be able to explain out loud. Use each session’s full vocabulary card for definitions and examples; use this page to check you have a handle on the core ideas before you present.

Session 1 — What is money?review focus

Be able to explain: what money does (medium of exchange, store of value, unit of account), currency vs money, wealth and poverty in plain English.

Anchor terms to use in your own summary: money, currency, value, exchange, wealth, barter. Session page · Full card

Session 2 — Counting and measuringreview focus

Be able to explain: budgets, what a business means by profit and loss, debt and interest at a basic level, “break even.”

Anchor terms: budget, afford, profit, loss, debt, interest, break even. Session page · Full card

Session 3 — Earning, spending, savingreview focus

Be able to explain: earn vs deserve, spending language, living within your means, paycheck and workplace vocabulary (PTO, benefits).

Anchor terms: earn, cut back, set aside, disposable income, paycheck, PTO, emergency fund. Session page · Recap · Full card

Session 4 — Banks, accounts, loansreview focus

Be able to explain: checking vs savings, deposit and withdraw, collateral, APR, compound interest, mortgage and amortization in outline.

Anchor terms: deposit, withdrawal, collateral, APR, mortgage, default, guarantor. Session page · Recap · Full card

Session 5 — How banks create moneyreview focus

Be able to explain: fractional reserves, credit creation, liquidity vs solvency, balance sheet basics, why bank runs matter.

Anchor terms: fractional reserve, money supply, bank run, liquidity, insolvent, systemic risk. Session page · Recap · Full card

Session 6 — Central banksreview focus

Be able to explain: monetary policy, base rate, how policy reaches consumers, inflation vs deflation at headline level, QE/QT in one sentence each.

Anchor terms: Federal Reserve, monetary policy, base rate, quantitative easing, inflation, tighten, transmission mechanism. Session page · Recap · Full card

Session 7 — Debt, credit, crisesreview focus

Be able to explain: creditworthy, subprime, mortgage-backed securities, default, and the 2008 story in your own words — without reading the recap verbatim.

Anchor terms: credit, creditworthy, subprime, mortgage-backed security, default, bailout, speculate. Session page · Recap · Full card