1. What is money, and how do banks create money? Explain what constitutes money nowadays, and how ‘fractional reserve banking’ enables the banking system to create money, based on the demand for money.

2. What is the Federal Reserve, and how does it control the money supply? What school of policy describes the Fed’s function? How does it address the Fed’s basic objectives of ensuring full employment and controlling inflation?

3. What is the “Washington Consensus”? Explain in terms of Fiscal policy, Monetary policy and (de)regulation by governments in general.