Test 6 Flashcards
(20 cards)
Could the federal reserve system still exist if there was no debt money?
No.
Does gold change value?
Yes.
What would be necessary for 100% fractional reserve banking?
Every loan must have its corresponding deposit.
What is the moral implication for extending credit?
It is a tool of oppression in the hands of evil men, but it is a tool of dominion in the hands of God’s people.
What occurs on a traditional gold standard?
The state must issue gold coins and paper money, and the promise a fixed price.
Would an immediate return to 100% fractional reserve or a slow return be better?
An immediate return would collapse the banks.
What are the Biblical principles of money?
- Standard weights and measures.
- No multiple indebtedness.
- Competitive entry in business.
- No legal tender laws.
What is the only example of an honest money system?
Byzantium.
What does the constitution say about issuing money?
State governments only can issue gold and silver.
How should prices move in a free, productive, growing economy?
They should be slowly falling.
What are the two things a traditional gold standard does?
It is better than a fiat money system.
But it allows the state to change the rules to easy.
What is money the product of?
Voluntary human action.
What would a checking account be like in a 100% reserve banking system?
It would be charged service fees.
What is required for true monetary reform?
A well informed spiritual revival.
What is the goal of the monetary reform program laid out in chapter 11?
Eliminate all central banking.
What are two parts of the program in chapter 11?
- Require the gold to be given back to us.
- Require annual audits.
Hoe would the money supply be affected by a return to the 100% reserve system?
It would shrink.
What would need to be eliminated to return to economic freedom?
Government price controls.
What would a return to 100% fractional reserve banking cause borrowers to do?
Take on short term loans.
20.
Both.
