CLEAN : Kenya's cash ban will be effective to formalise the economy: economist

The video discusses the process of extinguishing money in circulation, particularly focusing on corrupt or illegally obtained funds. It highlights the effectiveness of this approach, with evidence showing that about half of the $2 billion in 1000 shilling notes has been removed from circulation. Various methods of money laundering, such as using car dealerships and buying cows, are explored. The video emphasizes the need to formalize the economy and better control money flow, acknowledging that while some may lose out, these funds were often easily acquired.

What is the primary goal of extinguishing money in circulation?

• To reduce the amount of ill-gotten money

• To increase the amount of money in the economy

• To encourage more spending

• To decrease inflation

Which of the following is mentioned as a method of laundering money?

• Buying cows

• Opening a savings account

• Investing in real estate

• Purchasing government bonds

What is the central bank governor's stance on money laundering?

• It is a minor issue

• It is a significant problem

• It is beneficial for the economy

• It is not a concern

What is the intended outcome of formalizing the economy?

• To increase illegal money flow

• To encourage more cash transactions

• To gain better control over money circulation

• To reduce government oversight

What is the perspective on those who lose money due to the formalization efforts?

• They should be compensated

• They are victims of a flawed system

• They deserve it as the money was easily obtained

• They are unfairly treated