Lesson Plan

• Describe the primary functions of a central bank.
• Explain how quantitative and qualitative monetary‑policy tools affect the money supply and interest rates.
• Analyse the impact of central‑bank actions on price stability, economic growth and financial stability.
• Apply the money‑multiplier formula to illustrate how reserve changes influence the overall money supply.

• Projector and screen
• Whiteboard and markers
• Printed handout summarising central‑bank functions and tools
• Calculator or spreadsheet for multiplier calculations
• Worksheet with an interest‑rate‑cut case study
• Exit‑ticket slips

Begin with a brief news clip about a recent interest‑rate cut to capture interest. Ask students what they already know about how a country controls its money supply. Explain that by the end of the lesson they will be able to identify central‑bank functions, explain policy tools, and calculate the money multiplier.

1. Do‑now (5') – Quick quiz on basic money‑supply concepts.
2. Mini‑lecture (10') – Definition of a central bank and its six core functions, using slides.
3. Tool analysis activity (15') – In groups, examine each monetary‑policy tool, complete a chart describing type, mechanism and likely impact.
4. Money‑multiplier exercise (10') – Calculate multiplier effects for different reserve ratios.
5. Case‑study discussion (15') – Analyse the provided interest‑rate‑cut scenario and sketch the AD shift.
6. Check for understanding (5') – Exit‑ticket: “One way a central bank promotes financial stability.”

Summarise the central bank’s role as the cornerstone of monetary policy and revisit the key tools discussed. Collect exit tickets and remind students to research a real‑world central bank’s latest policy decision for homework.