Watch or re-watch the video, The Biggest Scam In The History of Mankind Hidden

Secrets of Money Ep 4,1 presented by Mike Maloney. Use the video to answer the

following questions. Unless otherwise stated, you do not need to explain your answers.

(a) In Step 1, what does the government do, through its Treasury department?

(b) In Step 2, the commercial banks trade bonds with the Federal Reserve (Fed) for

cheques, drawn against the Feds account. How much does the Feds account have in it?

(c) In what three ways do commercial banks make a profit from this monetary system?

(d) In Canada, what is the equivalent of the U.S. Federal Reserve?

(e) Suppose that the United States were to adopt a system of full-reserve banking; that

is, demand deposits would be illegal to lend out, and banks would only charge a nominal

fee for safekeeping. Would this help to fix the problems that Mike Maloney lays out in

this video? Explain your answer