UNIT 12 Monetary Policy

UNIT 12: MONETARY POLICY  GROUP 9: MEMBERS: Đỗ Thị Lan Phương Nguyễn Thị Hương Lê Thị Yến Oanh Welcome to unit 12 Monetar y Policy Group 10 Teacher: Ph m Th Tâmạ ị Members:  Nguy n Th H ngễ ị ươ  Đ Th Lan Ph ngỗ ị ươ  Lê Th Y n Oanhị ế Class: 21.07LT2 I. NEW WORDS  /r z rv/ɪˈ ɜ  /'kw ntit tiv/ɔ ə  /di'p zit/ɔ  /'p :tli/ɑ  /d pend/ɪˈ  /kæ /ʃ  /kle m/ɪ  /di'p zit /ɔ ə  / l t n t v/ɔː ˈ ɜː ə ɪ  / d ska nt reit/ˈ ɪ ʊ  / k spend/ɪ ˈ  / p r e n/ˌɒ ə ˈ ɪʃə  / mek n z m/ˈ ə ɪ ə  / ft/ʃɪ  /d za r/ɪˈ ɪə  /d sp z bl/ɪˈ əʊ ə  / n k r d /ɪ ˈ ʌ ɪ ʒ  /ra t /w d/ɪ ɔː  / k ses v/ɪ ˈ ɪ  /d s r pt/ɪ ˈ ʌ  / les n/ˈ ə  / k spend t r/ɪ ˈ ɪ ʃə  //r z rv r kwa m nt/ɪˈ ɜ ɪˈ ɪə ə  /s kj r ti/ɪˈ ʊə ə  / pra m ri m k t/ˈ ɪ ə ˈ ɑː ɪ  / æ r t d m nd/ˈ ɡ ɪɡə ɪˈ ɑː  /r str kt v/ɪˈ ɪ ɪ  /'æset/  /lo n/ʊ  / lt r/ˈɔ ə  Reserve  Quantitative  Deposit  Partly  depend  cash  claim  depositor  alternative  discount rate  /r z rv/ɪˈ ɜ  /'kw ntit tiv/ɔ ə  /di'p zit/ɔ  /'p :tli/ɑ  /d pend/ɪˈ  /kæ /ʃ  /kle m/ɪ  /di'p zit /ɔ ə  / l t n t v/ɔː ˈ ɜː ə ɪ  / d ska nt reit/ˈ ɪ ʊ  S d trự ự ữ  Đ nh l ngị ượ  Ti n g i NHề ử  M t ph nộ ầ  Ph thu cụ ộ  Ti n m tề ặ  Đòi h iỏ  Ng i g i ti nườ ử ề  D phòngự  Lãi su t chi t kh uấ ế ấ  expand  operation  mechanism  shift  desire  disposable  ecourage  rightward  excessive  Disrupt  / k spend/ɪ ˈ  / p r e n/ˌɒ ə ˈ ɪʃə  / mek n z m/ˈ ə ɪ ə  / ft/ʃɪ  /d za r/ɪˈ ɪə  /d sp z bl/ɪˈ əʊ ə  / n k r d /ɪ ˈ ʌ ɪ ʒ  /ra t /w d/ɪ ɔː  / k ses v/ɪ ˈ ɪ  /d s r pt/ɪ ˈ ʌ  M r ngở ộ  Quá trình HĐ  C c uơ ấ  S thay đ iự ổ  Mong mu nố  Kh d ngả ụ  Khuy n khíchế  V bên ph iề ả  Quá m cứ  Gây c n trả ở  lessen  expenditure  reserve requirement  security  primary market  aggregate demand  restrictive  asset  /ˈlesən/  /ɪkˈspendɪtʃər/  //rɪˈzɜrv rɪˈkwaɪəmənt/  /sɪˈkjʊərəti/  /ˈpraɪməri ˈmɑːkɪt/  /ˈæɡrɪɡət dɪˈmɑːnd/  /rɪˈstrɪktɪv/  /'æset/ Giảm bớt Khoản chi tiêu Dự trữ bắt buộc Chứng khoán Thị trường sơ cấp Tổng cầu Hạn chế Tài sản Monetary Policy Quantitative Tools of Monetary Policy Reserve requirement Discount rate Open market operations The central bank’s control over the supply of money Expansionary monetary policy Restrictive monetary policy II. Summary  Firstly, it talks about quantitative tools of monetary policy. There are 3 tools of monetary policy: 1. Reserve requirement: . the reverse requirement is the percentage the Fed sets as the minimum amount of reserves as bank must have. . The reserve requirement play a central role in how much money banks have to lend out. 1. Discount rate: it is the rate of interest the Fed charge for those loans. 2. Open market operations: it means the Fed’s buying and selling Gov. securities. [...]... bonds it will curtail investment, consumption, and even Gov expenditure III Short Questions  1 What is Monetary Policy? Monetary Policy is a government policy related to a nation’s money supply by each country’s Central Bank 2 How many tools of monetary policy? There are 3 tools of monetary policy: Reserve requirement Discount rate Open market operations  3 What is called reserve requirement?... sells bonds 2 What is the difference between monetary policy and fiscal policy? There are several differences here  Monetary policy controls a nation's money supply which is supervised by each country's Central Bank while fiscal policy is related to government's revenue and spending which is in the hand of Ministry of Finance  3 main tools of monetary policy are reserve requirements, Discount rate... will be supplied and aggregate demand will rise consequently As a result, Gov have to use restrictive monetary policy to reduce the inflation rate 4 What is the difference between expansionary monetary policy and restrictive monetary policy? There are some differences here  Expansionary monetary policy is used to increase the amount of money supply, whereas restrictive one is used to decrease it... market operations On the other hand, fiscal policy uses taxation and government spending as its 2 main tools 3 What is the relationship between monetary policy and fiscal policy? They have an interdependent and complement relationship since they are many overlapping issues between the two fields For example, if Gov decide to institute expansionary fiscal policy, they reduce taxes or increase their... Central Bank do to reduce aggregate demand? They can increase reserve requirements, raise discount rate or sell bonds IV LONG QUESTIONS 1 what are the quantitative tools of monetary policy? The quantitative tools of monetary policy include reserve requirement, discount rate and open market operations By changing the reserve requirements, discount rate the Fed can increase or decrease the money supply... Secondly, the central bank’s control over the supply of money There are two kinds of monetary policy  Expansionary MP: o It may be used to increase money supply by reducing reserve requirement, discount rate and buying more bonds It will result in a rightward shift of the aggregate demand . is Monetary Policy? Monetary Policy is a government policy related to a nation’s money supply by each country’s Central Bank. 2. How many tools of monetary policy? There are 3 tools of monetary. money Expansionary monetary policy Restrictive monetary policy II. Summary  Firstly, it talks about quantitative tools of monetary policy. There are 3 tools of monetary policy: 1. Reserve requirement: . . UNIT 12: MONETARY POLICY  GROUP 9: MEMBERS: Đỗ Thị Lan Phương Nguyễn Thị Hương Lê Thị Yến Oanh Welcome to unit 12 Monetar y Policy Group 10 Teacher: Ph m Th