Tugas Pertemuan 6
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?