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Ch 76: Central Bank & the Money Supply - ORELA Middle Grades Social Science

About This Chapter

If you're looking for study resources to refresh your memory of the central bank and money supply along with related concepts for the ORELA Middle Grade Social Science exam, then you've come to the right place! The short video lessons and quizzes in this chapter will help you remember the information necessary for your exam.

Central Bank & the Money Supply: ORELA Middle Grades Social Science - Chapter Summary

Remind yourself of the differences between real and nominal interest rates by watching a 5-minute interactive video lesson. Watch additional video lessons about the connection between the Federal Reserve and interest rates. Assess your own knowledge of the impact of the Reserve's ration on the money supply. After you've completed this chapter, you will be able to demonstrate your knowledge of the following on the exam:

  • Definition of the Federal Reserve System and open market operations
  • Reserve requirement and discount rate
  • Reserve ratio' impact on the money supply
  • Ways banks can receive loans from the Federal Reserve
  • Federal Reserve and interest rates
  • Explanation of the quantity theory of money
  • Definition of the velocity of money
  • Real and nominal interest rates
  • Private investment
  • Hyperinflation and the consumer price index

Use the links below the videos to move from topic to topic within them. You can also print out the quiz worksheets along with the answers if you would like to study away from your computer. Let our instructors know if you have any questions about the lessons. In addition to the quizzes, we also have chapter and final exams for additional practice.

Central Bank & Money Supply: ORELA Middle Grades Social Science Objectives

The category of the ORELA Middle Grades Social Science Objectives exam that this chapter links to is the Economics section. The section is worth 12% of the 150 multiple-choice computerized exam. One of the purposes of the related section is for you to show your knowledge of the part the Federal Reserve plays in the flow of the the money supply.

11 Lessons in Chapter 76: Central Bank & the Money Supply - ORELA Middle Grades Social Science
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.

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Other Chapters

Other chapters within the ORELA Middle Grades Social Science: Practice & Study Guide course

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