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Ch 64: CLEP Social Sciences and History: Central Bank and the Money Supply

About This Chapter

The federal reserve, financial policy, and banking regulations can seem like daunting subjects to learn, but these video lessons make it easy. Short multiple-choice assessments after each lesson will help you retain the information.

CLEP Social Sciences and History: Central Bank and the Money Supply - Chapter Summary and Learning Objectives

This chapter tackles the Federal Reserve, often referred to as 'the Fed', and explains the function it plays as a bank, a lender, and a regulator. These short video lessons will explain banking regulations, the circulation of money, interest rates and their effects on the economy. You will also get an explanation of inflation and the role of the Consumer Price Index. Make sure to take the short quiz after each lesson to gauge your understanding of the concepts. Through these videos, you will:

  • Discuss the monetary goals of the Fed
  • Explore how the Fed can change the money supply and affect interest rates
  • Compare types of interest rates
  • Learn about reserve requirements and why they are necessary
  • Discover the process by which banks borrow money from the Fed

Video Objective
Overview of the Federal Reserve System & its Processes Learn the basics about the Federal Reserve and its history.
Quantity Theory of Money: Output and Prices Consider the quantity theory of money.
The Velocity of Money: Definition and Circulation Speed Explore how money circulates in the economy.
Types of Interest Rates & Investments Compare real and nominal interest rates and learn about investment.
Hyperinflation, Money Supply and the Consumer Price Index Learn about inflation and the function of the Consumer Price Index.

5 Lessons in Chapter 64: CLEP Social Sciences and History: Central Bank and the Money Supply
Test your knowledge with a 30-question chapter practice test
Overview of the Federal Reserve System & its Processes

1. Overview of the Federal Reserve System & its Processes

Just about every week, you hear something in the news about the Federal Reserve, but what is it? What do they do that makes them so important? In short, as this lesson explains, they determine how much money is in the economy.

Quantity Theory of Money: Output and Prices

2. 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

3. 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.

Types of Interest Rates & Investments

4. Types of Interest Rates & Investments

Ever wonder how to make any sense out of all those investment options you constantly hear about? This lesson helps provide some understanding, as well as introduces the concept of the real interest rate.

Hyperinflation, Money Supply and the Consumer Price Index

5. 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.

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

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Other Chapters

Other chapters within the CLEP Social Sciences and History: Study Guide & Test Prep course

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