Lesson 28: Monetary Policies Counter Economic Challenges

LET'S UNLOCK WORDS AND PHRASES 🔐

monetary policy

/MON-uh-ter-ee PAH-li-see/

- rules or guidelines set by a central bank to control the economy

The government’s monetary policy reduced inflation and boosted exports.

quarter

/KWOR-ter/

- a three-month period used in financial reporting

Sales increased in the third quarter of the year.

rate

/reyt/

- a measure or standard, often related to interest or taxes

The bank raised its lending rate by 0.5%

reserve

/ri-ZURV/

- funds set aside for emergencies or specific purposes

The company used its reserve to cover unexpected expenses.

savings

/SAY-vingz/

- money set aside for future use

Her savings helped pay for unexpected medical bills.

shortfall

/SHORT-fawl/

- a deficit or lack of something needed

The shortfall in donations delayed the project.

stock

/stok/

- shares of ownership in a company

Investors are cautious about buying new stock this year.

taxpayer

/TAKS-pay-er/

- a person or entity required to pay taxes

Taxpayers demand more transparency in public spending.

dip

/dip/

- a small decrease

There was a dip in oil prices last week.

discount

/DIS-kownt/

- a reduced price or cost

The store offered a discount on all electronics.

ensure

/en-SHUR/

- to make certain of something

Policies are in place to ensure fair wages for workers.

equivalent

/ih-KWIV-uh-luhnt/

- something that is equal in value or function

His salary is equivalent to that of a senior manager.

forecast

/FOR-kast/

- to predict future trends based on current data

Experts forecast steady growth in the tech industry.

inherit

/in-HER-it/

- to receive something from a predecessor

She will inherit the leadership role after the CEO retires.

in the red

/in thuh red/

- operating at a loss

The small business remained in the red for three years.

invest

/in-VEST/

- to allocate money or resources for future benefit.

She decided to invest in renewable energy projects.

LET'S LISTEN! 🎧

Direction: Listen to the news and answer the comprehension questions below.

Lesson 28

COMPREHENSION QUESTIONS

1. What caused the slight dip in economic activity?

2. What are officials forecasting to address financial setbacks?

3. How are taxpayers affected by government reserves?

4. What is the purpose of discount programs?

LET'S PRACTICE 🎬

SITUATION

You are a journalist covering a breaking news story.
TASKS

Task 1: Use the vocabulary words to discuss what your news article will focus on.

Example: “My article will focus on how monetary policy changes impact taxpayers and savings during an economic dip.”

Task 2: Pretend to interview your teacher, who is an expert on the topic, using at least five vocabulary words.

Example Questions: “How do monetary policies affect reserve management?” “What solutions would you propose for addressing public funding shortfalls?” “How does a dip in economic activity impact savings and investment rates?” “What role does forecasting play in ensuring stability during financial crises?” “Why do you think stocks are a popular investment during periods of recovery?”

Task 3: Your teacher will play the editor. Discuss how to make up for any missed details in your report.

Example: “I missed explaining how the equivalent measures during the last quarter impacted taxpayers. Could we include a chart to clarify this?”

LET'S DISCUSS

How can governments encourage taxpayers to invest more in stocks during economic recovery?
Why is it important for reserves to remain stable during financial crises?
What can individuals do to ensure their savings grow despite economic dips?
Why do businesses need help from the government during hard times?
How can saving money help people prepare for the future?