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Ch 72: MTTC Social Studies (Secondary): Central Bank & Money Supply

About This Chapter

Refresh your memory of the central bank and the money supply by using this chapter's video lessons as tutorials. When you subsequently sit for the MTTC Social Studies (Secondary) examination, you could be well-prepared for related questions.

MTTC Social Studies (Secondary): Central Bank and Money Supply - Chapter Summary

This chapter focuses on the Federal Money Reserve and its functions and powers. You'll also discover more about the money supply, its origins and its relationship to the Federal Reserve. Increase your capacity to evaluate interest rates and to understand the effects of hyperinflation before you take the MTTC Social Studies (Secondary) examination. Watching this chapter's tutorial video lessons could help you with:

  • Defining the Federal Reserve System and open market operations
  • Discovering how the money supply is affected by the reserve ratio
  • Learning more about monetary policy and the discount rate
  • Exploring the effects of the Federal Reserve on the money supply
  • Describing the applications of the quantity theory of money
  • Examining the velocity of money
  • Comparing real and nominal interest rates
  • Discussing private investment and the consumer price index

The capable instructors in the videos use conversational language and real-world examples to teach you about the central bank and the money supply. Review at your own pace while preparing to ace the MTTC Social Studies (Secondary) examination. The timeline feature permits you to jump from topic to topic. You can also check out the summary section at the end of a lesson. Each of the video lessons includes a short multiple-choice quiz that gauges your retention of the information.

MTTC Social Studies (Secondary): Central Bank and Money Supply Chapter Objectives

The Economics sub-area of the MTTC Social Studies (Secondary) examination includes questions on the Federal Reserve System, monetary policy tools and many of the other topics that were presented in this chapter. This sub-area is worth about 13% of the score.

Apply what you learned through this chapter's lessons and previous studies in order to potentially qualify for a secondary social studies teaching certification. Take either the paper-based or the computer-administered assessment. Both versions feature 100 multiple-choice questions. You'll have to complete the paper-based examination within four hours and 30 minutes or the computer-based version within two hours and 30 minutes.

11 Lessons in Chapter 72: MTTC Social Studies (Secondary): Central Bank & Money Supply
Test your knowledge with a 30-question chapter practice test
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.

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 MTTC Social Studies (Secondary)(084): Practice & Study Guide course

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