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The Weekend Quiz – June 15-16, 2019

Welcome to The Weekend Quiz. The quiz tests whether you have been paying attention or not to the blog posts that I post. See how you go with the following questions. Your results are only known to you and no records are retained.

1. Bank reserves are maintained to ensure that all the cheques written every day clear when presented. If a bank doesn't have enough reserves then cheques drawn against it will bounce.

2. The crucial difference between a monetary system based on the gold standard world and a fiat currency monetary is that under the former system:

3. When the national government's fiscal balance moves into deficit:

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    This Post Has 9 Comments
    1. I’d basically given up on the quiz as I couldn’t get the language of economics clearly understood in my head.
      But I tried again and got 3/3 today

    2. Friends (and I think everyone here is my friend), please see my recent comment on Part 2 from this last Wed. About inflation in stock prices and in house prices doesn’t seem to worry MS economists.
      Or even core MMTers for that matter. Tell me why this is so. please.

    3. @steve_American: “inflation in stock prices and in house prices doesn’t seem to worry MS economists.
      Or even core MMTers for that matter”.
      Bear in mind elevated house and share prices (bubble territory) are likely considered ‘good’ by some in the MS (and the Oz govt. is doing everything it can to maintain high housing prices); whereas MMT’ers would see them as problematic. So I guess you need to consider inflation in different sectors?

    4. @ Neil,
      So, you’re saying that MS economists are being 2 faced when they complain that MMT will result in “Inflation”, but want high “inflation” in house and stock prices.
      And all the while never saying it clearly.
      Maybe you’re right.

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