Page 3 - FINAL CFA SLIDES DECEMBER 2018 DAY 6
P. 3
Session Unit 5:
18. Monetary and Fiscal Policy
LOS 18.a: Compare monetary and fiscal policy., p.105
Monetary policy = SARB’s actions on Money Supply (M) & Credit.
Fiscal policy G – T and can be > = < 0 ; Budget Deficit, Balanced Budget or Surplus Budget
Can be expansionary (or, accommodative/easy) or contractionary (or restrictive/tight)
LOS 18.b: Describe functions and definitions of money. p.105
• Medium of exchange (no Narrow money = amount of notes/coins in circulation plus in
need for barter) checkable bank deposits; Broad money =narrow money + any amount
• Unit of account available in liquid assets., cash and cash equivalents!
• Store of value
