In This Economy? audiobook cover - How Money & Markets Really Work

In This Economy?

How Money & Markets Really Work

Kyla Scanlon

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Categories:
EconomicsMoney & Investments

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In This Economy?
The Nature & Creation of Money+
Measuring the Economy (GDP)+
Stock and Bond Markets+
Central Banks & The Federal Reserve+

Quiz — Test Your Understanding

Question 1 of 6
How is most new money actually created in the modern economy?
  • A. By the government printing physical cash at the mint.
  • B. Through commercial banks lending out a portion of customer deposits.
  • C. By central banks directly depositing funds into citizen accounts.
  • D. Through the mining of digital currencies and electronic bartering.
Question 2 of 6
According to the text, which of the following represents a major limitation of using GDP as the primary metric for economic success?
  • A. It fails to account for the value of physical, durable goods like cars and computers.
  • B. It places too much emphasis on government spending rather than consumer behavior.
  • C. It struggles to measure the value of free digital services and intangible assets.
  • D. It only calculates domestic consumption and ignores the impact of net exports.
Question 3 of 6
While Exchange-Traded Funds (ETFs) are popular for diversifying risk, what unintended consequence has their rise created?
  • A. They have made it nearly impossible for new companies to issue corporate bonds.
  • B. They have led to an increasing concentration of power among a few large providers.
  • C. They have caused the S&P 500 to become entirely dependent on foreign investment.
  • D. They have eliminated the need for credit rating agencies like Standard & Poor's.
Question 4 of 6
What does the text identify as a significant concentration risk currently present in the U.S. stock market?
  • A. The heavy reliance on high-yield, low-rated 'junk' bonds.
  • B. A massive portion of the S&P 500's value being tied to just seven large technology companies.
  • C. The overexposure of commercial banks to risky mortgage lending.
  • D. The dominance of foreign reserve currencies displacing the U.S. dollar.
Question 5 of 6
What is the 'dual mandate' that the Federal Reserve must constantly balance?
  • A. Regulating the stock market and issuing government bonds.
  • B. Maximizing corporate profits and minimizing taxes.
  • C. Maintaining price stability and promoting employment.
  • D. Expanding the digital economy and reducing the national debt.
Question 6 of 6
What action does the Federal Reserve take during 'quantitative tightening' (QT)?
  • A. It buys U.S. Treasury securities to flood banks with reserves.
  • B. It sells off securities to drain liquidity from the financial system.
  • C. It lowers the discount rate to encourage banks to lend more freely.
  • D. It eliminates the reserve requirement for commercial banks.

In This Economy? — Full Chapter Overview

In This Economy? Summary & Overview

In This Economy? (2024) is a straightforward and approachable guide to understanding the core principles of economics. Aimed at demystifying financial complexities, it debunks common myths and uses engaging analogies and clear language to make sense of topics like national debt, recessions, and employment markets. 

Who Should Listen to In This Economy??

  • Budding students of economics, finance, or business administration
  • Entrepreneurs seeking to understand the economic forces impacting their companies
  • Anyone who wants to better understand the economic world around them

About the Author: Kyla Scanlon

Kyla Scanlon is a financial analyst and content creator known for her ability to clarify complex financial topics. Her work has been featured in publications like The New York Times, The Washington Post, and Bloomberg. 

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