1. Watch or re-watch the video, "The Biggest Scam In The History of Mankind Secrets of Money Ep 4,"! presented by Mike Maloney. Use the video to answer the following questions. Unless otherwise stated, you do not need to explain your answers. (a) In Step 1, what does the government do, through its Treasury department? (3%) (b) In Step 2, the commercial banks trade bonds with the Federal Reserve (Fed) for cheques, drawn against the Fed's account. How much does the Fed's account have in it? (3%) (c) In what three ways do commercial banks make a profit from this monetary system? (3%) (d) In Canada, what is the equivalent of the U.S. Federal Reserve? (3%) (e) Suppose that the United States were to adopt a system of full-reserve banking; that is, demand deposits would be illegal to lend out, and banks would only charge a nominal fee for safekeeping.? Would this help to fix the problems that Mike Maloney lays out in this video? Explain your answer. (18%) Hidden 2

1. Watch or re-watch the video, "The Biggest Scam In The History of Mankind Secrets of Money Ep 4,"! presented by Mike Maloney. Use the video to answer the following questions. Unless otherwise stated, you do not need to explain your answers. (a) In Step 1, what does the government do, through its Treasury department? (3%) (b) In Step 2, the commercial banks trade bonds with the Federal Reserve (Fed) for cheques, drawn against the Fed's account. How much does the Fed's account have in it? (3%) (c) In what three ways do commercial banks make a profit from this monetary system? (3%) (d) In Canada, what is the equivalent of the U.S. Federal Reserve? (3%) (e) Suppose that the United States were to adopt a system of full-reserve banking; that is, demand deposits would be illegal to lend out, and banks would only charge a nominal fee for safekeeping.? Would this help to fix the problems that Mike Maloney lays out in this video? Explain your answer. (18%) Hidden 2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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