Week 10: The Money Supply and Federal Reserve System
This unit will be in two parts. In week 10, students will do Part One - Money Supply and Creation of Credit, and in week 11, students will do Part Two- Federal Reserve and the Monetary Policy
This week and week 11, students will learn about the concept of money supply in an economy. They will learn about the different measures of money supply, like M1 , M2, and M3, which the monetary authority uses in the country to measure the amount of money in the economy. The students will also learn about the creation of credit and how the banking system in the economy creates money out of thin air.
The second part of this module will be continued in week 11, where students will be introduced to the 'Federal Reserve System', the central banking system of the U.S., and how the central bank of the U.S determines and regulates the monetary policy of the country.
The attendance for this week will be based on submission to the assignment for this week which is due on Nov 18th 11.59 pm