Who controls the money Flashcards
The value of money is backed by what?
NOTHING - Our money is FIAT or free-floating.
The value of money is backed by what?
NOTHING - Our money is FIAT or free-floating.
What are the main consequences of FIAT (free-floating/non-backed) money?
Increase inflation & dilution of countries’ money reserves.
Who writes the policies & controls the creation/issuing of money?
The Federal Reserves
How does the Federal Res. stimulate the Economy?
By causing economic booms & drops (effect rates & resource/money supply)
What backs money around the world?
The American dollar - almost everyone follows the central banking system & has USD in their reserves.
Where does the money come from?
The Federal Res. creates/prints money nearly on-demand to loan out to the government.
The Federal Res. & central banks can create money from nothing. How do commercial banks get their money?
Commercial banks need a loan from central banks to create money.
Who started the idea & what was the reason behind it?
William Paterson back in 1964 - England needed help to continue funding their political war/issues.
What are the main consequences of FIAT (free-floating/non-backed) money?
Increase inflation & dilution of countries’ money reserves.
Who writes the policies & controls the creation/issuing of money?
The Federal Reserves
How does the Federal Res. stimulate the Economy?
By causing economic booms & drops (effect rates & resource/money supply)
What backs money around the world?
The American dollar - almost everyone follows the central banking system & has USD in their reserves.
Where does the money come from?
The Federal Res. creates/prints money nearly on-demand to loan out to the government.
The Federal Res. & central banks can create money from nothing. How do commercial banks get their money?
Commercial banks need a loan from central banks to create money.
