Worksheet for EconMovies Episode #9: Despicable Me Monetary Policy, covering key economic terms and concepts related to monetary policy.

- Monetary Policy: policy created by the central bank to control borrowing, money supply, and mostly the interest rate
- Central Bank: A national bank for the government and provides financial services
- Interest Rate: The amount a lender charges to a borrower for using their funds
- Investment: Investing money to make a profit
- Money Supply: The amount of money is circulation of a country
- Expansionary Monetary Policy: The central bank uses tools to grow the economy
- Contractionary Monetary Policy: The central bank uses tools to prevent inflation
- Banks are essential for keeping the economy healthy because they give loans and keep the economy flowing and money in circulation.
- A lower interest rate would lead to more consumers spending and investing because they are going to have a smaller amount of money they are going to have to pay back on their spendings and investments if the interest rates on their payments are lower.
- The two main responsibilities of the Federal Reserve are to maintain stability and keep track of the baking system and manage inflation.