Resources Quiz Test Your Skills 1. The United States is monetarily sovereign, which means... it has the ability to issue its own currency. it has more political power than any other country. it can print as much money as it wants and does not have to worry about inflation. it issues the world’s reserve currency. 2. Private lending is preferable to public spending. True False 3. Our national currency is valuable because… it is backed by gold. of the support of public institutions and the economic output of our economy as a whole. we never create new money. the Federal Reserve is independent. 4. Much of what we think of as money is created… by banks when they make loans. by counterfeiters. when people double their money at casino slot machines. by the manufacturers of the boardgame “Monopoly.” 5. Banks create ___________ paper money. credit money. Bitcoin. all forms of money. 6. Banks can make their profits by… the number of savings accounts they are able to open per year lending out money given to them by depositors. taking a portion of the money they store in a vault. charging interest on loans. storing people’s money for them. 7. The money that banks lend out is… their money. some depositor's money. their investors’ money. our (the public’s) money that banks create when they make loans. 8. Taxes are necessary to fund spending. True False 9. There are 3 types of money: physical money, commercial bank money, and ____________ gold. central bank reserves. private donor money. Monopoly money. 10. Government finances operate like household finances. True False 11. Our Money’s proposals would help… end involuntary unemployment. address educational and environmental issues. address issues of private debt. all of the above. 12. The Job Guarantee is important because… it would alleviate economic insecurity for anyone willing to work. it would reduce expressions of racism by minimizing economic insecurity. it would reduce inequality across the pay scale, by strengthening worker bargaining power. all of the above 13. Deficit spending only becomes an issue when… the national debt gets too high. inflation gets too high. politicians want an excuse to be stingy. the size of the numbers becomes scary. 14. Our Money proposes to check inflation first by… raising interest rates. raising taxes. limiting bank allocation of public money to public interest uses. cutting public spending. 15. The power of money creation is important because… we need to realize the government is a counterfeiter and go back to the gold standard. we need to remember that the public is not responsible enough to be trusted with this power. it is an underappreciated source of democratic power to attend to public priorities. it can be used to fund tax cuts and wars. 16. Understanding the power of money creation is the key to unlocking our democratic power to attend to our most brutally neglected public priorities like public education, full employment, affordable housing, health care and general community and economic development. True False Time is Up!