H.T.S. Crest Holy Trinity School
Grade 9 Business
Lesson Plan

Lesson #18:

During this class students will explore the concept of interest. Interest is yet another key factor responsible for altering the money supply and, therefore, driving the economic cycle. Interest is a term used to describe the cost of borrowing money. From a different perspective, it is plain to see that interest also represents the profit to be earned on loaned money, guaranteed investments, or savings deposits.

Interest: The cost of borrowing money. Expressed as an annual percentage, to be calculated on a principle amount.

Monetary Policy: Policy, established by the Bank of Canada, designed to regulate the flow of Canada's money supply.

During this class, students should come to understand the following concepts associated with the interest:

Monetary policy is about money.
The Bank of Canada is concerned with how much money circulates
in our economy and how much that money is worth. The ultimate objective of the
Bank of Canada, working through monetary policy,
is to enhance the standard of living of Canadians.

In addition, students will come to understand the various objectives which would motivate the Bank of Canada to increase interest rates, including:

Finally, students will come to understand the various objectives which would motivate the Bank of Canada to decrease interest rates, including:


Instructional Method and Evaluation:

Students will take notes on the above topics and participate in socratic discussion. Afterwards, students will complete a spreadsheet which will calculate interest rates and interest amounts.


Resources:


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