tiếng anh chuyên ngành, Study notes of English Literature

Download tiếng anh chuyên ngành and more Study notes English Literature in PDF only on Docsity! UNIT 1 1. What is the definition of “economics”? (Kinh tế học) Economics is the study (n) of / Economics studies (v) How people choose to use resources to improve their well-being. 2. Who is an economist? Nhà kinh tế học An economist is a person who studies economics. 3. What is the definition of well-being? Hạnh phúc Well-being includes the satisfaction people gain from the products and the services they choose to cosume.(Hạnh phúc bao gồm sự hài lòng mà mọi người đạt được từ các sản phẩm và dịch vụ mà họ chọn để thu hút.) 4. What is productivity? ( năng suất ) Productivity is the rate at which goods are produced.(Năng suất là tốc độ sản xuất hàng hóa.) 5. What are resources of a country? ( tài nguyên của một quốc gia) A country's resources are the things that it has and can use to increase its wealth, such as coal, oil, or land. (Tài nguyên của một quốc gia là những thứ mà quốc gia đó có và có thể sử dụng để gia tăng sự giàu có, chẳng hạn như than, dầu hoặc đất đai.) 6. What are resources of an organization?( nguồn lực của 1 tổ chức ) The resources of an organization are the materials, money, and other things that they have and can use in order to function properly. (Các nguồn lực của một tổ chức là vật liệu, tiền bạc và những thứ khác mà họ có và có thể sử dụng để hoạt động bình thường.) 7. What are 3 types of resources? Resources can be divided into 3 types of natural resources, human resources and capital. (Có thể chia tài nguyên thành 3 loại tài nguyên thiên nhiên, nhân lực và vốn.) 8. How are all types of resources? (ntn) All types of resources are limited / scarce.(Tất cả các loại tài nguyên đều có hạn / khan hiếm. 9. Give some examples for natural resources. (VD về tài ng thiên nhiên) Natural resources include land, water, wind, solar energy, mineral underground, etc. (Tài nguyên thiên nhiên bao gồm đất, nước, gió, năng lượng mặt trời, khoáng sản dưới lòng đất, v.v.) 10. Give some examples for human resources.(VD nguồn nhân lực) Human resources include labor force, time, talent, inventions, patents, knowledge, experience, etc. (Nguồn nhân lực bao gồm sức lao động, thời gian, tài năng, phát minh, sáng chế, kiến thức, kinh nghiệm, v.v.) 11. Why is it necessary to study economics? (Tsao phải học KTH) Because all types of resources are limited, while/ whereas the human demand is unlimited. (Bởi vì tất cả các loại nguồn lực đều có hạn, trong khi / ngược lại nhu cầu của con người là không giới hạn.) 12. What are 3 main (major) issues studied in economics? (3 vđe chính( lớn) được nghiên cứu trong KTH ) They are production, distribution and consumption of goods and services (Đó là sản xuất, phân phối và tiêu dùng hàng hóa và dịch vụ) 13. What are two branches/ types of economics? (2 ngành/loại) Economics can be divided into microeconomics and macroeconomics (Kinh tế học có thể được chia thành kinh tế vi mô và kinh tế vĩ mô) 14. What is the economic theory of Adam Smith?( lí thuyết Adam) It is the Classical School.= Đó là Trường phái Cổ điển. 15. What is the economic theory of Adam Smith about? ( lthuyet Adam nói về) It says that because of their own interests, people produce goods and wealth that benefit all society. (Nó nói rằng vì lợi ích của mình, con người sản xuất ra hàng hóa và của cải có lợi cho toàn xã hội.) 1 16. Why did Adam Smith believe that the government (the visible hand) should not restrict or interfere in the market? (Tại sao Adam Smith tin rằng chính phủ (bàn tay hữu hình) không nên hạn chế hoặc can thiệp vào thị trường?) Because the market could regulate itself and could produce wealth at maximum efficiency.(Bởi vì thị trường có thể tự điều tiết và có thể tạo ra của cải với hiệu quả tối đa.) 17. What is the economic theory of Karl Marx? It is Marxism. (Đó là chủ nghĩa Mác.) 18. What is the economic theory of Karl Marx about? Marx believed that owners’ exploitation of labor leads to social unrest and class conflict, so laborers should own and control means of production in order to ensure the social and economic stability. (Marx tin rằng sự bóc lột sức lao động của chủ sở hữu dẫn đến bất ổn xã hội và xung đột giai cấp, vì vậy người lao động phải sở hữu và kiểm soát tư liệu sản xuất để đảm bảo sự ổn định xã hội và kinh tế.) 19. Why did Marx suggest that laborers should own and control means of production? (Tại sao Marx đề nghị người lao động phải sở hữu và kiểm soát tư liệu sản xuất?) Because Marx believed that owners’ exploitation of labor leads to social unrest and class conflict.(Bởi vì Marx tin rằng sự bóc lột sức lao động của chủ sở hữu dẫn đến bất ổn xã hội và xung đột giai cấp.) 20. What is the economic theory of Keynes? It is Keynesian School. =Đó là Trường phái Keynes. 21. What is the economic theory of Keynes about? The theory of Keynes describes how governments use macroeconomic policies to regulate the economy, ensuring the social and economic stability. (Lý thuyết của Keynes mô tả cách các chính phủ sử dụng các chính sách kinh tế vĩ mô để điều tiết nền kinh tế, đảm bảo sự ổn định kinh tế và xã hội.) 22. According to Keynes, what can the government do when the economy isn’t growing fast enough? (Theo Keynes, chính phủ có thể làm gì khi nền kinh tế không phát triển đủ nhanh?) The government can reduce taxes or increase government spending to promote economic growth and reduce unemployment. (Chính phủ có thể giảm thuế hoặc tăng chi tiêu của chính phủ để thúc đẩy tăng trưởng kinh tế và giảm tỷ lệ thất nghiệp.) 23. According to Keynes, what can the government do when the economy becomes overly active? Theo Keynes, chính phủ có thể làm gì khi nền kinh tế trở nên quá năng động The government can increase taxes and reduce government spending = Chính phủ có thể tăng thuế và giảm chi tiêu của chính phủ 24. How can studying economics help people? (24. Nghiên cứu kinh tế học có thể giúp ích gì cho mọi người?) Studying economics can help people understand human thought and behavior. =Nghiên cứu kinh tế học có thể giúp mọi người hiểu được suy nghĩ và hành vi của con người. 2 UNIT 4: MACROECONOMIC = KINH TẾ VĨ MÔ x7. What is the definition of macroeconomics? - Macroeconomics is the branch of economics that studies the economic activity of an entire country and economy- wide (- Kinh tế học vĩ mô là ngành kinh tế học nghiên cứu hoạt động kinh tế của cả một quốc gia và toàn bộ nền kinh tế) . What’s the goal of macro-e?   Macro-economic look at overall economic trends such as  inflation, economic growth employment levels, balance of  payment AND SO ON (Kinh tế vĩ mô xem xét các xu hướng kinh tế tổng thể như lạm phát, tăng trưởng kinh tế mức độ việc làm và cán cân thanh toán) x1. What are two major macroeconomic policies? Hai chính sách kinh tế vĩ mô lớn là gì? They are monetary policy and fiscal policy = Đó là chính sách tiền tệ và chính sách tài khóa monetary policy: Fiscal policy is the government policy which controls government taxation and spending. (Chính sách tài khóa là chính sách của chính phủ kiểm soát việc đánh thuế và chi tiêu của chính phủ.) x2. Who supervises monetary policy? 2. Ai giám sát chính sách tiền tệ? The Central Bank of each country supervises monetary policy. = Ngân hàng Trung ương của mỗi quốc gia giám sát chính sách tiền tệ. x3. What does monetary policy control? 3. Chính sách tiền tệ kiểm soát điều gì? It controls the money supply of a nation.= Nó kiểm soát lượng cung tiền (lượng cung tiền) của một quốc gia. XX3. What are the main tools of monetary policy? Các công cụ chính của chính sách tiền tệ là gì?  There are changing: (Có những thay đổi ) Reserve requirement. = yêu cầu dự trữ The discount rate. = tỉ suất chiếu khấu Open-market operation. = hđ thị trường mở x4. Who supervises fiscal policy? 4. Ai giám sát chính sách tài khóa? The Ministry of Finance supervises fiscal policy. = Bộ Tài chính giám sát chính sách tài khóa x5. What does fiscal policy control? 5. Chính sách tài khóa kiểm soát điều gì? It controls the government’s revenue and spending = Nó kiểm soát doanh thu và chi tiêu của chính phủ XX3. What are the main tools of fiscal policy? 3. Các công cụ chính của chính sách tài khóa là gì? There are taxation and government spending. = Có thuế và chi tiêu của chính phủ. x6. What are the main objectives of macroeconomic policies? Mục tiêu chính của các chính sách kinh tế vĩ mô là gì? The main objectives of macroeconomic policies are: to promote economic growth, to keep inflation under control = Mục tiêu chính của các chính sách kinh tế vĩ mô là: thúc đẩy tăng trưởng kinh tế, kiểm soát lạm phát 8. What do economic tresnd include? 8. Các xu hướng kinh tế bao gồm những gì? Economic trends include employment levels, economic growth, balance of payments, inflation and so on. Các xu hướng kinh tế bao gồm mức độ việc làm, tăng trưởng kinh tế, cán cân thanh toán, lạm phát, v.v. 9. What does GDP stand for? 9. GDP là viết tắt của gì? GDP stands for Gross Domestic Products. = GDP là viết tắt của Tổng sản phẩm quốc nội. x10. Why are microeconomics and macroeconomics actually interdependent and complement one another? = RELATIONSHIP = MỐI QUAN HỆ Tại sao kinh tế vi mô và kinh tế vĩ mô thực sự phụ thuộc lẫn nhau và bổ sung cho nhau? - They are actually interdependent and complement one another (Chúng thực sự phụ thuộc lẫn nhau và bổ sung cho nhau) - They provide fundamental tools for any finance professional (- Họ cung cấp các công cụ cơ bản cho bất kỳ chuyên gia tài chính nào) 11. What is the definition of “economic trends”? XU HƯỚNG KINH TẾ Economic trends refer to changes or developments in economies. (.Xu hướng kinh tế đề cập đến những thay đổi hoặc phát triển trong nền kinh tế) 12. What is a country's balance of payments? ‘cán cân thanh toán của một quốc gia là gì? 5 The balance of payments of a country is the difference between the payments it makes to other countries for imports and the payments it receives from other countries for exports over a period of time. (Cán cân thanh toán của một quốc gia là khoản chênh lệch giữa các khoản thanh toán mà quốc gia này thực hiện cho các quốc gia khác để nhập khẩu và các khoản thanh toán mà quốc gia đó nhận được từ các quốc gia khác cho hàng xuất khẩu trong một khoảng thời gian.) 13. When is the balance of payments of a country in surplus? Khi nào cán cân thanh toán của một quốc gia thặng dư? It is in surplus when the country exports more than it imports.= Nó thặng dư khi quốc gia xuất khẩu nhiều hơn nhập khẩu. 14. When is the balance of payments of a country in deficit? 14. Khi nào cán cân thanh toán của một quốc gia bị thâm hụt? It is in deficit when the country imports more than it exports. = Nó bị thâm hụt khi quốc gia nhập khẩu nhiều hơn xuất khẩu. 15. What is the money supply? 15. Cung tiền là gì? The money supply is the total amount of money in a country's economy at any one time. Cung tiền là tổng lượng tiền trong nền kinh tế của một quốc gia tại bất kỳ thời điểm nào. 1. What does macroeconomics study? ( nghiên cứu về ) Macro is a branch of economics that studies the economic activity of an  entire country and economy wide- phenomena. It looks at overall economic  trends such as employment levels, economic growth, balance or payments,  inflation and so on, Therefore it provides people with a bird’s-eye view of a country's economic landscape.  Macro là một nhánh của kinh tế học nghiên cứu hoạt động kinh tế của toàn bộ một quốc gia và các hiện tượng trên phạm vi rộng của nền kinh tế. Nó xem xét các xu hướng kinh tế tổng thể như mức độ việc làm, tăng trưởng kinh tế, cán cân hoặc thanh toán, lạm phát, v.v. Do đó, nó cung cấp cho mọi người cái nhìn tổng thể về bối cảnh kinh tế của một quốc gia. 2. What are differences between microeconomics and macroeconomics? There’re some differences between macro and micro. Firstly, micro studies  individual and business decisions while macro looks at higher up country  and government decisions. Secondly, micro focuses in supply and demand  and other forces that determine the price. On the other hand, macro centers  on economy-wide phenomena such as GDP, national income, inflation, ect…  Lastly, micro takes a bottom-up approach while macro takes a top- down  approach. Có một số khác biệt giữa vĩ mô và vi mô. Thứ nhất, vi mô nghiên cứu các quyết định của cá nhân và doanh nghiệp trong khi vĩ mô xem xét các quyết định của chính phủ và quốc gia cấp cao hơn. Thứ hai, vi mô tập trung vào cung cầu và các lực lượng khác quyết định giá cả. Mặt khác, vĩ mô tập trung vào các hiện tượng của toàn nền kinh tế như GDP, thu nhập quốc dân, lạm phát ... Cuối cùng, vi mô thực hiện phương pháp tiếp cận từ dưới lên trong khi vĩ mô thực hiện phương pháp tiếp cận từ trên xuống.  3. What are 2 branches of economics? What do they study? 3. Kinh tế học 2 ngành là gì? Họ học gì? Two main branches of economics are micro and macro. Micro studies the  actions of individuals and industries. Macro studies the economic activity of  an entire country and economy-wide phenomena. Hai nhánh chính của kinh tế học là vi mô và vĩ mô. Vi mô nghiên cứu hành động của các cá nhân và các ngành. Macro nghiên cứu hoạt động kinh tế của cả một quốc gia và các hiện tượng trong toàn bộ nền kinh tế. 6 UNIT 5: DEMAND AND SUPPLY = cung và cầu 1.  What is the definition of demand? CẦU Demand is all quantites of goods or services that buyers are  willing and able to buy at various prices. (Cầu là tất cả số lượng hàng hóa hoặc dịch vụ mà người mua sẵn sàng và có thể mua ở các mức giá khác nhau.) 2. What are shift factors of demand? Các yếu tố thay đổi của nhu cầu là gì Shift factors of demand are society’s income, prices of other goods, expectations and tastes. Các yếu tố thay đổi của cầu là thu nhập của xã hội, giá cả của các hàng hóa khác, kỳ vọng và thị hiếu. 3. What is quantity demanded? Quantity demanded is the specific amount of goods and services that buyers are willing and able to buy at a certain price. 4. What is supply? Supply refers to all possible quantities of goods and services that sellers are able and willing to sell at all possible prices. 5. What are shift factors of supply? Shift factors of supply are prices of inputs, technology, taxes and suppliers’ expectations. 6. What is quantity supplied? Quantity supplied is the specific amount of goods and services that sellers are willing and able to sell at a certain price. 7. When is a market in equilibrium? A market is in equilibrium when the quantity demanded is equal to quantity supplied at a certain price. 8. How do prices of a good influence its quantity demanded? When other things are constant, if price of goods increases, the quantity demanded will decrease and vice versa. 9. How do prices of a good influence its quantity supplied? When other things are constant, if price of goods increases, the quantity supplied will increase and vice versa. 10. What is the definition of shift factors? Shift factors are things other than prices that cause shift of a demand curve or supply curve to the right or to the left. 11. What is market price? Market price is the price at which buyers and sellers trade the item in an open market place. 12. What does the term “expectation” mean? “Expectation” means strong hope or belief that something will happen. 13. What is demand curve? Demand curve is a graphic representation of the relationship between product price and the quantity of the product demanded. 14. What is supply curve? Supply curve is a graphic representation of the relationship between product price and the quantity of the product supplied. 15. What is market mechanism? Market mechanism is the manner in which consumers and producers can determine the price and the quantity the things produced. 16. What factors cause the whole demand curve shift to the right or the left? Shift factors cause the whole demand curve shift to the right or the left. 7 15. Who do domestic investors include? Domestic investors include private domestic investors, the central bank and local governments. 16. What is individual income tax? Individual income tax is the tax (which is) imposed/ levied on individual incomes. 17. What is corporate income tax? Corporate income tax is the tax imposed on corporate incomes 18. What is customs duty? Customs duty is the tax imposed on imports/ imported goods. 19. What is excise tax? Excise tax is the tax imposed on specific goods such as alcohol, beer, hotels, restaurants, and so on. 20. What are payroll taxes? Payroll taxes are taxes are based on payroll including social insurance and health insurance paid jointly by workers and employers. UNIT 7: FISCAL POLICY 1. What is fiscal policy? Fiscal policy is a government policy related to taxation and public spending. 2. What is the main objective of fiscal policy? The main objective of fiscal policy is to maintain economic growth, high employment and low inflation. 3. What is expansionary fiscal policy? Fiscal policy is expansionary when taxation is reduced or public spending is increased. 4. What is contractionary fiscal policy? Fiscal policy is contractionary when taxation is increased or public spending is reduced. 5. What is deficit? Deficit is the total amount by which money spent is more than money received. 6. What is deficit spending? Deficit spending is a situation in which a company or especially a government spends more money than it collects for a given period of time. Or What is government’s deficit spending? Government’s deficit spending means spending funds obtained by borrowing or printing instead of taxation. 7. What is budget deficit? Budget deficit is the difference between a government’s income and how much it spends. 8. What is revenue? Revenue is the income that a government or company receives regularly. 9. What is inflation? Inflation is the rise in prices resulting from an increase in the supply of money. 10. What is inflation rate? Inflation rate is the rate at which prices increase overtime causing the value of money to fall. 11. What is grant? 10 Grant is an amount of money given, usually by a government or nonprofit organization to fund certain projects. 12. What is solvency? Solvency is the ability to pay all the money that is owed. 13. What is government revenue? Government revenue is the money received from taxation, fees, fines, securities sales as well as any sales that are made. 14. How do government spending and taxation affect the economy? Government spending and taxation affect the economy directly. 15. When is deficit spending helpful for the economy? Deficit spending is helpful for the economy when unemployment is high or economic growth is low. 16. When is deficit spending harmful for the economy? Deficit spending is harmful for the economy when unemployment is low or inflation is high. 17. Under what circumstances can fiscal policy be expansionary? Fiscal policy can be expansionary when the economy is not growing fast enough or unemployment is too high. 18. Under what circumstances can fiscal policy be contractionary? Fiscal policy can be contractionary when the economy is growing too fast or inflation is high. 19. What factors should be considered in making decisions on the fiscal policy? They are the level of economic growth or unemployment likely in the future, political considerations, fiscal policies of other countries and the requirements of the IMF. 20. How can deficits be financed? Deficits can be financed by borrowing or printing more money. 21. What may happen when deficits are financed by borrowing? The interest rates may rise. 22. What may happen when deficits are financed by printing money? Prices and inflation may rise. 23. How can the government generate its revenue? The government generates its revenue by collecting taxes and borrowing more money. 24. What are the purposes of expansionary fiscal policy? It is used for creating jobs and developing the economy. 25. What are the purposes of contractionary fiscal policy? It is used for slowing down the economy and reducing inflation. 26. What are the main tools of fiscal policy? They are government spending and taxation. 27. Why should the government consider fiscal policies of other countries? Because fiscal policies of other countries may tempt multinational corporations to relocate their subsidiaries by offering them generous tax programs or other government-controlled benefits. 11 UNIT 8: TAXATION 1. What is the primary function of taxation? The primary function of taxation is to raise revenue to finance government expenditure. 2. What is the function of indirect excise duties? The function of indirect excise duties is to dissuade people from consuming unnecessary goods and services. 3. What is the function of income taxes? Income tax is one of the ways in which government can redistribute wealth. 4. Why is it said that business profits are generally taxed twice? Business profits are generally taxed twice: companies pay tax on their profit and the shareholders pay income tax on dividends. 5. What is the marginal rate? The marginal rate is the tax people pay on any additional income. 6. What does national insurance mean? National insurance means a tax on payrolls that pays for sickness benefit, unemployment benefit and old-age pensions 7. How do individuals evade tax? Self- employed people and people with part-time jobs don’t declare their incomes to the tax offices. 8. How can highly-paid employees reduce their income tax liability? To reduce income tax liability, highly-paid employees receive lots of perks instead of taxable money such as company cars, free health insurance and subsidized lunches. 9. What is consumption? Consumption is defined as the use of goods and services by a household. 10. What is one of the ways for companies to avoid tax on profits? Companies can bring forward capital expenditure on new factories, machines and so on so that at the end of the year all the profits have been used up. 11. Where should multinational companies set up their subsidiaries? Multinational companies should set up their subsidiaries in countries where taxes are low/ tax havens. 12. How do criminal organizations launder money/ disguise the origin of money from tax inspectors and the police? Criminal organizations tend to pass money through a series of companies in very complicated transactions 13. What is a progressive tax? A progressive tax is the tax imposed at a higher rate on higher incomes 14. What is a regressive tax? A regressive tax is a tax which is imposed at the same tax rates, so that poorer people need to spend a larger proportion of their incomes than the rich. 15. What does the term “tax shelter” mean? Tax shelter means delaying the payment of taxes to a later time. 16. What does the term “tax deductible” mean? Tax-deductible means the amount of money subtracted from taxable incomes or profits 17. What does the term “tax haven” mean? Tax haven means a country offering very low tax rates to foreign businesses. 18. What does the term “individual income tax” mean? Individual income tax is the tax imposed on wages and salaries of individuals. 19. What is a direct tax? 12 UNIT 11 1. What is a foreign currency? A foreign currency is the currency used in other countries, and not in your own country. 2. What is “money”? Money is the coins or bank notes that you use to buy things, or the sum that you have in a bank account. 3. What is the definition of “legal tender”? Legal tender is money, especially a particular coin or banknote, which is officially part of a country's currency at a particular time. 4. What is the definition of “denomination”? The denomination of a banknote or coin is its official value. 5. What is a medium of exchange? Medium of exchange is anything that is widely accepted as payments for goods and services and settlements of debts. 6. What is token money? Token money is a metal or plastic disc, such as a substitute for currency for use in slot machines 7. What are 4 functions of money? They are medium of exchange (means of payment); measure of value (unit of account); store of value and standard of deferred payment 8. How is money used as a medium of exchange? As a medium of exchange, money is used to make payments for goods and services, as well as make settlements of debts. 9. What does the settlement of a debt mean? The settlement of a debt is the act of paying back money that you owe. 10. What is barter economy? Barter economy is the economy in which goods and services are traded directly without the use of money. 11. What is a measure of value? Measure of value or unit of account is the unit in which prices are quoted and accounts are kept. 12. Why is it more convenient to use money as a means of payment as well as a unit of account? Because there is no need to exchange one currency for another. 13. What is a store of value? As a store of value, money is used to make purchases in the future or money is saved for future use. 14. Why isn’t money the best store of value? Because money can reduce its value over time due to inflation. 15. What are better stores of value? Property (bất động sản) and gold and some other types of investments can function as a store of value better. 16. What is a standard of deferred payment? Or unit of account over time? As a standard of deferred payment, money is used to make payments for debts in the future. 17. What makes the function of money as a standard of deferred payment more important? This function becomes more important because of the expansion of the installment buying. 18. If you buy a good on credit, how do you make payments for that good? Firstly you have to pay a deposit, then you have to make regular repayments until the debts are used up. 19. What is one of the reasons to explain why medium of exchange is the most important function of money? Because the use of money as a medium of exchange helps promote trade, simplify the trading process/ 15 Or: the use of money as a medium of exchange helps people to save time and energy to trade goods and services with one another. Or: money as a medium of exchange has made the exchange of goods and services much simpler, much more efficient. 20. What are 2 main types of money, basically? They are commodity money and token money. 21. What are examples for commodity money? Examples for commodity money are gold coins and silver coins. 22. What are examples for token money? Examples for token money are banknotes and metal coins; checks or plastic cards. 23. What is the monetary value or purchasing power of commodity money in comparison with its material value? The monetary value or the purchasing power of commodity money is the same as its material value. 24. What is the monetary value or purchasing power of token money in comparison with its material value? The monetary value or the purchasing power of token money greatly exceeds its material value. 25. What is one of the advantages of token money in comparison with commodity money? Token money is much safer and more convenient to use in comparison with commodity money. UNIT 12: MONETARY POLICY 1. What is the monetary policy? Monetary policy which controls a nation’s money supply is supervised by each country’s Central Bank. 2. What are the objectives (or goals) of monetary policy? The objectives of monetary policy are to promote economic growth and to keep inflation under control. 3. What are main tools of monetary policy? The main tools of monetary policy are reserve requirements, discount rates and open market operations. 4. What is reserve requirement? Reserve requirement is a certain percentage of deposits that the Central bank requires other banks to keep in reserve. Or The reserve requirement set by the Central bank is the minimum amount of reserves as banks must have. 5. What is the role of reserve requirements? The reserve requirements play a central role in how much money banks have to lend out 6. How can the Central bank make changes to the money supply by changing reserve requirements? By changing reserve requirements, the Central bank can increase or decrease the money supply. 7. What happens if the Central bank increases the reserve requirement? If the Central increases the reserve requirement, it contracts the money supply; banks have to keep more in reserve so they have less money to lend out. 8. What happens if the Central bank reduces the reserve requirement? If the Central bank reduces the reserve requirement, it expands the money supply; banks have to keep less in reserve so they have more money to lend out. 9. What is the discount rate? The discount rate is the rate of interest the Central bank charges on loans that it makes to other banks. 10. What happens if the central bank increases the discount rate? If the central bank increases the discount rate, it contracts the money supply. 16 11. What happens if the central bank reduces the discount rate? If the central bank reduces the discount rate, it expands the money supply. 12. What will happen if the Central banks buy government securities? If the Central banks buy government securities, the money supply will increase. 13. What will happen if the Central banks sell government securities? If the Central banks sell government securities, the money supply will decrease. 14. What are open market operations? Open market operations refer to the buying and selling of government securities by the Central Bank on the open market. 15. What is a deposit? A deposit is a sum of money which is in a bank account or savings account, especially a sum which will be left there for some time. 16. How can banks encourage people to borrow and spend more money? Banks can encourage people to borrow and spend more money by offering lower interest rates or easier approvals. 17. How can banks restrict people to borrow and spend less money? Banks can restrict people to borrow and spend less money by offering higher interest rates or more difficult approvals. 18. Under what circumstance should monetary policy be expansionary? Monetary policy should be expansionary when unemployment is high or economic growth is low 19. Under what circumstance should monetary policy be restrictive? Monetary policy should be restrictive when inflation is too high. 20. What is expansionary monetary policy? Monetary policy is expansionary when the Central bank reduces reserve requirements or discount rates or buys more government securities. 21. What is restrictive monetary policy? Monetary policy is restrictive when the Central bank increases reserve requirements or discount rates or sells more government securities. 22. Who are depositors of a bank? A bank's depositors are the people who have accounts with that bank. 23. What are objectives of expansionary monetary policy? The objectives of expansionary monetary policy are to promote economic growth and create more jobs. 23. What is the objective of restrictive monetary policy? The objectives of restrictive monetary policy are to reduce inflation. 24. What can banks do if they are short of reserves? If they are short of reserves, banks can borrow money from their bank (the Central bank). 17