Saturday Quiz – September 29, 2012
Welcome to the Billy Blog Saturday Quiz. The quiz tests whether you have been paying attention over the last seven days. See how you go with the following questions. Your results are only known to you and no records are retained.
Bill,
I knew I would get No 3 wrong but I put the correct answer anyway.
Full-reserve banking does prevent debt-deflation, leads to reduced levels of government and private debt(therefore reduced private bank lending), and leads to financial and economic stability.
At least, that’s what the model shows.
http://www.imf.org/external/pubs/ft/wp/2012/wp12202.pdf
Thanks.
I really enjoy getting 5 out of 5 for these. I missed out last week. Now I will check to see if my reasoning is correct.
I got the premium question right so I may be allowed to ask one dumb question: Could you elaborate on Q#3 and Q#4 a bit? I just don’t get them both (although I really, and I really mean “really”, don’t view myself as a “neo-liberal”). @ #3: Are there no constraints or would constraints not help stability? And @#4: Why “raising” taxes? You need to tax for your currency to work, ok, but why “raising” taxes when there’s no mention whatsoever about the tax rate beforehand plus no specifics about the planned “socio-economic agenda”? Or am I just too much of a nit-picker here with regard to wording?