MONEY, BANKING, AND MONETARY POLICY
The focus of this first week is on the basic concepts of the United
States’ financial system. Students will first learn what money is, how banks
and the banking systems can influence and control the supply and disposition
of money, and the function of the Federal Reserve. Lastly, the relationship
between money and various economic variables will be discussed.
1. Identify the functions of money and the money supply.
2. Illustrate the creation of money using the money multiplier effect.
3. Delineate the role of the Federal Reserve System in designing and
implementing U.S. Monetary policies.
4. Describe how changes in the money supply impact inflation.
5. Analyze the effect of changes in the reserve requirement, discount
rate, and open market policies.
Please read all the lectures by clicking on the
FUNCTIONS OF MONEY
AND MONEY CREATION
THE MONEY MARKET
EQUATION OF EXCHANGE