I thought econ teachers wanting to bring the money supply to life for students would enjoy this video from Visual Capitalist:

“The dollar amounts are so staggering, that simply telling you how much money humans have created probably wouldn’t convey the magnitude. However, by using data visualization in this video, we can relate numbers in the millions, billions, and trillions to create the context to make it more understandable.”

Questions:

• Jot down the size of the various money markets described in the video.
• What numbers surprised you the most?
• Most of us think of money as currency and coins. What percentage of “broad money” is physical money as compared to digital money?
• In your own words, describe what a derivative is.

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.