Alternative Monetary Policy Tools: Funding for Lending and Forward Guidance

Alternative Monetary Policy Tools: Funding for Lending and Forward Guidance

Assessment

Interactive Video

Business

11th Grade - University

Hard

Created by

Quizizz Content

FREE Resource

The video discusses alternative monetary policy tools, focusing on Funding for Lending and forward guidance. Funding for Lending aims to boost bank lending by providing cheaper funding, encouraging credit creation, and stimulating economic growth. Forward guidance involves central banks communicating future interest rate expectations to influence market behavior. Both tools are crucial in shaping monetary policy and impacting the real economy.

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3 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

Describe the difference between specific and implied forward guidance.

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the potential benefits of forward guidance for economic agents?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

In what ways do Funding for Lending and forward guidance interact within the monetary policy process?

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