Copyright

Ch 12: Central Bank and the Money Supply: Homework Help

About This Chapter

The Central Bank and the Money Supply chapter of this College-Level Principles of Macroeconomics Homework Help course helps students complete their central bank and the money supply homework and earn better grades. This homework help resource uses simple and fun videos that are about five minutes long.

How it works:

  • Identify which concepts are covered on your central bank and the money supply homework.
  • Find videos on those topics within this chapter.
  • Watch fun videos, pausing and reviewing as needed.
  • Complete sample questions and get instant feedback.
  • Finish your central bank and the money supply homework with ease!

Topics from your homework you'll be able to complete:

  • Federal Reserve system
  • Open market operations and the Federal Reserve
  • Discount rate and monetary policy
  • Quantity theory of money
  • Velocity of money
  • Real vs. nominal interest rates
  • Hyperinflation, money supply and the consumer price index

17 Lessons in Chapter 12: Central Bank and the Money Supply: Homework Help
Test your knowledge with a 30-question chapter practice test
What is the Federal Reserve System?

1. What is the Federal Reserve System?

Have you ever wondered why interest rates go up and down, seemingly at random? Of course you have! Discover what the Federal Reserve is, what its goals are and how those goals are achieved in this introductory lesson explaining the central bank of the United States.

Reserve Requirement, Open Market Operations and the Discount Rate

2. Reserve Requirement, Open Market Operations and the Discount Rate

This lesson outlines the three main tools used by the central bank to conduct monetary policy, including open market operations, required reserves and the discount rate.

Open Market Operations & the Federal Reserve: Definition & Examples

3. Open Market Operations & the Federal Reserve: Definition & Examples

This lesson explains the most frequently used monetary policy tool of the central bank, open market operations. Using examples, you'll go inside the formula of the money multiplier and see how the Federal Reserve effectively controls the interest rate of the economy.

How the Reserve Ratio Affects the Money Supply

4. How the Reserve Ratio Affects the Money Supply

Where does our supply of money come from. Well, it's in the hands of the Federal Reserve. In this lesson, discover how the central bank can dramatically alter the supply of money in the economy by changing the reserve requirements of the banks it oversees.

The Discount Rate & Monetary Policy: How Banks Can Borrow Money from the Federal Reserve

5. The Discount Rate & Monetary Policy: How Banks Can Borrow Money from the Federal Reserve

Learn more about the discount rate, which is the rate that banks pay to the central bank when borrowing money. This lesson explains how changes in the discount rate affect the money supply and how the central bank can use the discount rate as part of monetary policy.

How the Federal Reserve Changes the Money Supply and Affects Interest Rates

6. How the Federal Reserve Changes the Money Supply and Affects Interest Rates

Discover the connection between the money supply and economic output and how the central bank's tools lead to an increase or decrease in real GDP via expansionary and contractionary monetary policy.

Quantity Theory of Money: Output and Prices

7. Quantity Theory of Money: Output and Prices

This lesson explains the quantity theory of money and how to apply it, including the idea that an increase in the money supply leads to inflation in the long run.

The Velocity of Money: Definition and Circulation Speed

8. The Velocity of Money: Definition and Circulation Speed

Learn about the method economists use to measure how fast money changes hands throughout the economy, referred to as the velocity of money. With the help of an imaginative story, this lesson defines the concept of velocity as well as what determines it.

Real vs. Nominal Interest Rates and Changes in Prices

9. Real vs. Nominal Interest Rates and Changes in Prices

This lesson explains the important difference between nominal and real interest rates and provides examples of how to use the Fisher equation to adjust nominal rates for inflation.

Private Investment and Real Interest Rates

10. Private Investment and Real Interest Rates

When you borrow money, where does that money come from and why is it available? In this lesson, you'll learn about the market for loanable funds, where savers deposit money and entrepreneurs borrow money to finance private investment.

Hyperinflation, Money Supply and the Consumer Price Index

11. Hyperinflation, Money Supply and the Consumer Price Index

Is there such a thing as too much money? Maybe. What happens when inflation is excessive? This lesson explores what hyperinflation is and how it is connected with the money supply.

What is National Debt? - Definition, Effects & History

12. What is National Debt? - Definition, Effects & History

National debt is the total amount owed by a government to its creditors. National debt plays a crucial role in a country's financial system. Learn about this and test your knowledge with a quiz.

What is Quantitative Easing? - Definition, History & Effects

13. What is Quantitative Easing? - Definition, History & Effects

Quantitative easing is the infusion of cash into the economy to stimulate lending and economic growth. A brief history and timeline of the use of quantitative easing is explored in this lesson.

Monetary Value: Definition & Examples

14. Monetary Value: Definition & Examples

Monetary value is a concept that helps makes our modern economic system possible. In this lesson, you'll learn about monetary value, its related concepts, and its importance.

The Glass-Steagall Act: Purpose & Repeal

15. The Glass-Steagall Act: Purpose & Repeal

The Glass-Steagall Act of 1933 was enacted in response to the stock market crash of 1929. This bill was repealed in 1999 by the Gramm-Leach-Bliley Act because it was seen as being too restrictive for banks and businesses. This lesson discusses the history and impact of these two acts.

The Glass-Steagall Act: Definition & Summary

16. The Glass-Steagall Act: Definition & Summary

The Glass-Steagall Act was a law that was passed in 1933 to prevent banks for speculating in the stock market and then failing during a stock market crash. The law remained in effect until 1999 when it was repealed by Congress.

What is a Currency War? - Definition & History

17. What is a Currency War? - Definition & History

In this lesson we will discuss what a currency war is and the history behind currency wars. We will also discuss the negative effects of a currency war and its impact on the economy.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Support