In sections 1 and 2 of this chapter, we are taught the basic concepts of money, banking, and finance. For an efficient functioning of the economy, money is one of the most important parts and also the banking system. Something very interesting that is talked about in section 1 is that if there is a problem in the banking system, it can lead to a deep and lasting recession. Monetary Policy means the use of policy tools that are controlled by the national central bank and that influence the interest rate, as well as the availability of credit. For economists, they define the term money as something that plays three specific roles in an economy, as discussed below. Money is a financial asset and has 3 important functions: