Money, Central Banking, and Monetary Policy

Describe the functions and definitions of money.

Explain money creation through fractional reserve banking and calculate the money multiplier.

Explain the roles, objectives, and independence of central banks.

Describe the tools of conventional monetary policy (policy rate, open market operations, reserve requirements).

Explain the monetary policy transmission mechanism.

Describe the limitations of monetary policy, including policy lags and liquidity traps.

Describe unconventional monetary policies such as quantitative easing (QE).