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Ch 58: CEOE Business Education: Central Bank and Monetary Policy

About This Chapter

Cement your knowledge of the Federal Reserve System, central banks and monetary policies with our short and fun video lessons. These lessons easily get you prepared to answer related questions on the CEOE Business Education exam.

CEOE Business Education: Central Bank and Monetary Policy - Chapter Summary

If it's been awhile since you studied the central bank and monetary policy, you're in the right spot. Our fast and flexible video lessons cover the essential topics that you might be asked about on the CEOE Business Education exam, including:

  • The Federal Reserve System
  • Reserve requirement and discount rate
  • Open market operations
  • Reserve ratio's effect on the money supply
  • Quantity theory of money
  • Velocity of money
  • Real and nominal interest rates
  • Private investment, hyperinflation and money supply

These video lessons offer a fun approach to learning about the central bank and are taught by subject-matter experts who break down large concepts into bite-sized chunks, helping you easily retain info you'll need for the exam. You can re-watch videos as often as you need and use the video tags to refer back to main points in the lessons.

Objectives of the CEOE Business Education: Central Bank and Monetary Policy Chapter

To get certified as a business teacher in Oklahoma, you'll need to take and pass the CEOE Business Education exam. It tests your knowledge of business topics in five areas, including finance and economics, which is where you'll find questions about the central bank and monetary policy. The finance and economics subarea makes up about 17% of the exam. The majority of the questions on the exam are selected-response, and you can familiarize yourself with the format of this style of question by taking our quizzes that follow each lesson. A constructed-response question is also included on the exam.

11 Lessons in Chapter 58: CEOE Business Education: Central Bank and Monetary Policy
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 CEOE Business Education: Practice & Study Guide course

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