Podcast
Questions and Answers
Money is primarily used as a yardstick for measuring what?
Money is primarily used as a yardstick for measuring what?
Under the proposed program, who would have equal access to the financial system?
Under the proposed program, who would have equal access to the financial system?
What is the purpose of creating money using commercial banks and a central banking system?
What is the purpose of creating money using commercial banks and a central banking system?
What would be the source of funds for the equal allotment of credit to citizens?
What would be the source of funds for the equal allotment of credit to citizens?
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Under the original design of a central banking system, how would businesses obtain loans?
Under the original design of a central banking system, how would businesses obtain loans?
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What is the proposed system of political economy called by the Center for Economic and Social Justice?
What is the proposed system of political economy called by the Center for Economic and Social Justice?
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How would the Federal Reserve create an 'elastic' asset-backed currency?
How would the Federal Reserve create an 'elastic' asset-backed currency?
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What would happen to the money created for a loan after it is repaid?
What would happen to the money created for a loan after it is repaid?
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Which of the following best describes money?
Which of the following best describes money?
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What are the four main characteristics of money according to most economists?
What are the four main characteristics of money according to most economists?
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According to lawyer-economist Louis Kelso, what is money ultimately?
According to lawyer-economist Louis Kelso, what is money ultimately?
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Study Notes
Money as a Yardstick
- Money serves as the primary measure of value.
### Equal Access to the Financial System
- All citizens would have equal access to the financial system under the proposed program.
Purpose of Money Creation
- Commercial banks and a central banking system create money to facilitate economic transactions.
Source of Credit Funds
- Equal allotment of credit to citizens would be funded by a central bank, which would create new money.
Obtaining Loans
- Businesses would obtain loans through a central bank in the original design of a central banking system.
System of Political Economy
- The Center for Economic and Social Justice proposes a new system of political economy called " Economic Democracy.
Elastic Asset-Backed Currency
- The Federal Reserve would create an "elastic" asset-backed currency by adjusting the money supply based on economic conditions.
### Loan Repayment
- Money created for loans would be destroyed after repayment, reducing the total money supply.
### Characteristics of Money
- Money is a medium of exchange, a unit of account, and a store of value.
Key Characteristics of Money
- Money is portable, durable, divisible, and scarce.
### Money's True Nature
- Lawyer-economist Louis Kelso believes that money is ultimately a claim on real capital.
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Description
Test your knowledge about the concept of money and its creation process. Learn about the various forms of money and its role in measuring and exchanging value in the marketplace.
