10 Questions
What is one of the main barriers to extending access to capital ownership among the poor and middle class?
Lack of collateral for loans
What is the name of the act that would enshrine access to credit for acquiring productive capital as a fundamental right of citizenship?
The Capital Homestead Act
How would citizens pay off their purchases of newly issued shares?
With tax-deductible dividends
Which type of insurance would protect worker-shareholders against the loss of their retirement assets if a company failed?
Capital credit insurance
What would be the premium costs for commercial portfolio insurance covering shares in high-risk, start-up companies?
Astronomical
What would happen to the loan paper once it is insured and brought to the discount window of the regional Federal Reserve bank?
New currency would be issued
Under the Economic Democracy Act, what could be established as an alternative to traditional collateral requirements?
Commercial loan default insurance and reinsurance pools
What is one option to encourage responsible lending practices by member banks under the Economic Democracy Act?
Having capital credit insurance cover only 80% to 90% of a defaulted loan
What would the Capital Credit Reinsurance Corporation (CCRC) primarily offer insurance for?
Capital credit loan default insurance
What could be set up by the CCRC to group participating corporations based on their risk levels?
Differential risk categories with adjustable premium rates
Test your knowledge on the Economic Democracy Act and its impact on capital credit insurance and reinsurance. Explore how this act aims to overcome the collateral barrier to capital ownership and make access to credit a fundamental right for every citizen.
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