Module 3 – Home
The Money Market
Modular Learning Outcomes
Upon successful completion of this module, the student will be able to satisfy the following outcomes:
•Case ◦What is money?
◦Explain the tools the Federal Reserve uses to conduct monetary policy.
◦Apply what you have learned about fiscal and monetary policy to identify government actions.
•SLP ◦Analyze the effect of Federal Reserve policy on the financial health of organizations.
•Discussion ◦Discuss the problems with high inflation.
Module Overview
Money, which represents the prose of life, and which is hardly spoken of in parlors without an apology, is, in its effects and laws, as beautiful as roses.
—Ralph Waldo Emerson, 1844.
We’ll examine money—what it is, how it evolved, how it functions, how it can be manipulated, and how it relates to the rest of the economy. This module also focuses on the role of the Federal Reserve and monetary policy.
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