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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![1. Watch or re-watch the video, “The Biggest Scam In The History of Mankind – Hidden
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.2 Would this help to fix the problems that Mike Maloney lays out in
this video? Explain your answer. (18%)
1 יר](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F87f9aa08-5432-4b39-9583-9e3af51a652b%2Fd0419858-d4c4-4c6f-ac37-2f6bc28dc42f%2Fgw1bksp_processed.png&w=3840&q=75)
Transcribed Image Text:1. Watch or re-watch the video, “The Biggest Scam In The History of Mankind – Hidden
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.2 Would this help to fix the problems that Mike Maloney lays out in
this video? Explain your answer. (18%)
1 יר
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