Tugas Pertemuan 6 DISCUSSION QUESTIONS 1. You might hear a banker argue, “My bank’s books always balance (or at least they should always balance). I merely pass on to investors the money that my depositors bring to me. What do you mean that bankers create money? I certainly do not!” Evaluate this argument. 2. Monetary reformers sometimes suggest paying banks the market rate of interest on reserves. What effect would this have on excess reserves? On the stability of the money multiplier? 3. What is meant by the “double coincidence” of barter? How does barter differ from the practice of using cigarettes as money (a practice that did occur in some prison camps during WW II)? What would happen to “prison prices” if smoking destroyed some of the money supply or a new Red Cross shipment of cigarettes arrived? Who would benefit from changes in the cigarette supply? Who would lose? 4. How does the existence of near-money complicate the definition of money? In what sense is the definition of money a matter of taste and pragmatism rather than science? What recent banking innovations complicate the definition of money? 5. Discuss the different types of financial services offered in the economy (stocks and bonds, insurance, pensions, loans, safe deposit boxes, saving and checking accounts, wire transfers, conversion of foreign currencies, etc.). At what local institutions are these available? In what areas do banks compete?