About This Chapter
Money & Interest-Rate Relationships - Chapter Summary
This chapter on money and interest-rate relationships is designed to help you quickly review topics related to the economics of demand, the Federal Reserve system, money supply and open market operations. Study these engaging video lessons at any time that fits your schedule, and take the included self-assessment quizzes to solidify your understanding of the relationships between money and interest rates. If you have any questions about the chapter material, simply submit them to our expert instructors. By the end of the chapter, you should be able to:
- Understand the purpose and functions of the Federal Reserve system
- Assess the ways in which the Federal Reserve affects interest rates and the money supply
- Evaluate the relationship between the Federal Reserve and open market operations
- Describe the economics of demand in terms of interest rates and money demand
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. 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.
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. Money Demand and Interest Rates: Economics of Demand
Learn about the differences between money, wealth and income and explore the factors that determine the demand for money in an economy. Take a look at the demand curve for money as well.
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Other chapters within the TECEP Financial Institutions & Markets: Practice & Test Prep course
- Financial Markets & Financial Instruments
- Interest Rates Overview
- Financial Market Analysis & Trading
- Banks & Other Financial Intermediaries
- The Flow of Funds in Financial Intermediaries
- Regulation of Financial Institutions
- Introduction to International Finance
- Introduction to the Mortgage Market
- Futures & Options
- Branch Banking & Deposit Insurance
- Inflation & Income Policies
- TECEP Financial Institutions & Markets Flashcards