The Money View: In Gold They Trust

The video tutorial explains the difference between the outside money illusion and the inside money reality. It discusses how expenditures can be made through borrowing, selling assets, or drawing down money balances. The tutorial also covers bilateral transactions and the role of intermediaries like the private banking system. Finally, it addresses the impact of financial crises on these systems, highlighting the role of the public system in stepping in when the private system fails.

What are the three sources of funds mentioned for making an expenditure?

• Borrowing, selling an asset, drawing down money balances

• Saving, earning, selling an asset

• Borrowing, investing, earning

• Investing, saving, earning

What does the outside money illusion assume about transactions?

• They are all done through cash

• They are all done through credit cards

• They can be done by moving gold back and forth

• They are all done through digital currency

How can transactions between individuals affect the private banking system?

• They decrease the number of loans

• They increase deposits

• They have no effect

• They decrease deposits

What happens to the financial system during a crisis?

• It stops working properly

• It becomes more efficient

• It functions normally

• It requires less intervention

What role does the public system play during a financial crisis?

• It stops all transactions

• It decreases the money supply

• It reduces the number of banks

• It steps in with increased loans and money