LECTURE FOUR

Home SYLLABUS COURSE MATERIAL LECTURE EXAM

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.

 

OBJECTIVES

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.

 

TOPICS

Please read all the lectures by clicking on the following topics.

FUNCTIONS OF MONEY

MEASURES OF MONEY

BANKS AND MONEY CREATION

FEDERAL RESERVE SYSTEM

MONETARY POLICY

THE MONEY MARKET

EQUATION OF EXCHANGE

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