About This Chapter
ILTS Business, Marketing and Computer Education - Fiscal & Monetary Policy: Chapter Summary
Do you know how the reserve ratio affects money supply? Can you give examples of automatic stabilizers in the economy? If not, you might want to complete this online chapter on fiscal and monetary policy before taking the Illinois Licensure Testing System (ILTS) Business, Marketing and Computer Education exam. In addition to answering the questions posed above, the video lessons in this chapter address the following topics related to fiscal and monetary policy:
- The Federal Reserve System
- Reserve requirement, open market operations and the discount rate
- Open market operations and the Federal Reserve
- The Keynesian revolution
- Fiscal policy tools: Government spending and taxation
- Expansionary monetary policy: Helping the economy grow
- Contractionary monetary police: Slowing the economy down
- Managing the economy with fiscal and monetary policy
ILTS Business, Marketing and Computer Education - Fiscal & Monetary Policy Objectives
The ILTS Business, Marketing and Computer Education exam is offered only in a paper-based format six times a year. This test, which is part of the Illinois teacher certification process, features 125 multiple-choice questions. The test's subarea on economics, consumer economics and career development could include questions about fiscal and monetary policies.
Produced by a team of professional educators, this series of brief, engaging videos can prepare you for the ILTS Business, Marketing and Computer Education content area test. Each lesson also includes quiz questions, modeled after questions on the ILTS, that can help you determine where you're prepared for the exam and where you could use some extra work.
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.
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.
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.
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.
5. Fiscal Policy: The Keynesian Revolution
In this lesson, you'll learn how the government uses stabilization policy to smooth out the ups and downs of the business cycles. In stark opposition to the Classical approach, this Keynesian approach favors taking immediate action to stabilize a troubled economy.
6. Fiscal Policy Tools: Government Spending and Taxes
Discover the three main tools the government uses to address recessionary and inflationary economies - what economists call fiscal policy. Find out how these tools are used to help the economy in different situations.
7. Automatic Stabilizers in Economics: Definition & Examples
Watch this lesson to learn about the features that are built into the tax code and the government's budget that help offset declines in aggregate demand during recessions. Referred to as automatic stabilizers, they also address the needs of individuals facing hard times.
8. Expansionary Monetary Policy: Helping the Economy Grow
In this lesson, you'll learn how the central bank helps the economy grow during recessions by increasing the size of the money supply. An overview of the three tools of monetary policy are included as well as the reasons why monetary policy leads to higher economic output.
9. Contractionary Monetary Policy: Slowing the Economy Down
In this lesson, you'll find out more about the central bank's efforts to deal with an overheating economy, what economists call 'contractionary monetary policy.'
10. Managing the Economy with Fiscal and Monetary Policies
Learn what fiscal and monetary policy are and how they are used to manage the economy. Find out the goals of these policies and some of the tools that each use to help you find a job and influence the amount of money in your pocket.
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Other chapters within the ILTS Business, Marketing, and Computer Education (171): Test Practice and Study Guide course
- ILTS Business: Accounting Cycle
- ILTS Business: Applied Accounting
- ILTS Business: Accounting Principles
- ILTS Business: Types of Investments
- ILTS Business: Business Partnerships
- ILTS Business: Evaluating Company Performance
- ILTS Business: Economic Basics
- ILTS Business: The US Economy
- ILTS Business: Economics of a Firm
- ILTS Business: Global Economics
- ILTS Business: Marketing Basics
- ILTS Business: Product Pricing & Selling
- ILTS Business: Product Development & Distribution
- ILTS Business: Product Promotion
- ILTS Business: Market Research
- ILTS Business: Selling & Customer Service
- ILTS Business: Entrepreneurship
- ILTS Business: Management
- ILTS Business: Organizational Structure
- ILTS Business: Teams in a Business Setting
- ILTS Business: Leadership
- ILTS Business: Human Resource Management
- ILTS Business: Business Ethics
- ILTS Business: Business Law
- ILTS Business: Global Business
- ILTS Business: Challenges of Globalization
- ILTS Business: Business Communication
- ILTS Business: Computer Basics
- ILTS Business: Information Systems & Applications
- ILTS Business: The Internet and Business
- ILTS Business, Marketing, and Computer Education Flashcards