Lesson 16: Andrew Jackson and the Second Bank of the United States

The students participate in a simulation that demonstrates how banks create money and facilitate exchange and economic growth. The simulation provides a basis for the students' subsequent examination of Andrew Jackson's veto of the recharter of the Second Bank of the United States. They read an account of events surrounding the veto and write a short essay stating their reasons for agreeing or disagreeing with Jackson's decision.

Concepts:

Financial intermediation, Fractional reserve banking, Medium of exchange, Money, Specialization and exchange
National Content Standards in Economics:
  • Standard #11: Money and Inflation