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The money and banking quiz

The following is not so much a quiz, but possible questions that could be used to lead someone to their own discovery. In my experience, the average person will not be able to satisfactorily answer a single one of these questions without doing some actual research. Hopefully, during that detailed examination, some of the flaws of our monetary system will reveal themselves. I wouldn’t suggest using the entire list, as that just looks like work, but perhaps a single question or two to pique the curiosity and get the mental gears turning.

1) Almost every year there are more dollars in existence than the year before. Where do these new dollars come from?

2) Who gets the privilege of spending these new dollars without first having to earn them? Is this fair? Have you ever received one of these newly created, excess dollars?

3) If every single American received an equal share of the newly created dollars, what effect would it have on the economy?

4) If these new dollars were distributed unequally, what would the effect be?

5) Only about 3% of the dollars in existence exist in the form of physical currency (paper money, coins). What form does the other 97% take?

6) If banks make money by lending out money that is deposited, how can that money be both lent out and available for withdrawal at the same time?

7) Why is counterfeiting dollars illegal?

8) If a counterfeiter could produce a perfect reproduction (indistinguishable from the real thing), would there be a victim to the crime?

9) If so, who is the victim and how are they actually hurt?

10) If you were granted the sole legal right to manufacture dollars in unlimited quantity, would there be anything that you couldn’t buy? Would there be any real limits to your power? Would a democracy still be possible under that condition?


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