Standards for Interest Calculator

Standard: 14

Name: Banks, Interest Rates, and Financial Markets

Banks connect savers and borrowers by accepting deposits and making loans, with the interest rate serving as the price of money borrowed or saved. Businesses can also obtain funds by issuing debt or selling ownership shares in the company.

• K-5: At the elementary school level, students learn about the role of banks and interest.
• 6-8: Middle school students understand what a bank does with the money people deposit and how interest rates are determined by markets.
• 9-12: High school students learn about financial markets, including stock and bond markets. The concept of real interest rate is introduced, as is how interest rates impact lenders and borrowers.Benchmark Students will know that: Students will use this knowledge to: 14.E.1 Banks are businesses where people save money and earn interest, and where people borrow money and pay interest.Role-play bankers taking in deposits from customers who earn interest and other customers taking out loans and paying interest.E: ELEMENTARY STUDENTS