Be able to explain how Monetary Policy works; how it is orchestrated, by whom, how it can affect individuals during an economic downturn or Inflationary period and its limitations. 3. Money & Banking / Money Creation: LO 33.3, 33.4, 33.5 Be able to describe how a bank, using the lending process (IOU’s) creates multiples of new money in the economic system and how that is linked to Monetary Policy and Interest Rates that impact individuals operating in the economy.