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Beginning Activities Title today’s lesson: Monetary Policy Beginning Activity: What is monetary policy? Mission Statement: To prepare you for a life of.

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Presentation on theme: "Beginning Activities Title today’s lesson: Monetary Policy Beginning Activity: What is monetary policy? Mission Statement: To prepare you for a life of."— Presentation transcript:

1 Beginning Activities Title today’s lesson: Monetary Policy Beginning Activity: What is monetary policy? Mission Statement: To prepare you for a life of responsible citizenship Daily Expectations: – No one leaves once class has begun. – Come in quietly and get to work immediately – Pay attention and be respectful – No phones – No food or drinks other than water – Do your work – Give AP quality effort 5 bonus points for supplies

2 Extra Credit 5 points each 6 weeks for bringing supplies: – Paper clips – Pens – Paper – Staples – Tape

3 Monetary Policy Chapter 15 The Fed and Monetary Policy

4 Fractional Bank Reserves Banks have to keep a fraction of their deposits in the form of legal reserves. They loan out the rest which can go into the system and power the economy. The reserve requirement states that a percentage of every deposit be set aside as legal reserves.

5 Monetary Policy Tools Moral suasion – use of persuasion through press releases or news articles about possible moves by the Fed Selective credit control – credit rules pertaining to loans for specific commodities or purposes – Ex. minimum down payments on cars during World War II

6 Ending Activity Page 414: Profiles in Economics Make sure the floor is clean Connect to our objectives: How does this prepare you for life and the future?


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