Bitcoin Poem 102

The Risks of Fiat (Bitcoin Poem 102)

Users of some exchanges based in the United Kingdom need to pass a quiz (to show understanding of the risks) before they can buy Bitcoin.

Perhaps people should also pass a quiz before using fiat money, just so they also understand the risks. Here is a United Stated based quiz.

75% score required, 15 out of 20 questions.

What is the Cantillon Effect?
Describe seigniorage?
Who benefits most from seigniorage?
How much value has the dollar lost since 1913?
What is the #1 cause of inflation?
What is “fiat” money?
What does fiat mean in Latin?
Who prints money in the United States?
What is Quantitative Easing (QE)?
What is a Central Bank?
When was the US Central Bank created?
What happens to the value of fiat over time?
Describe the Bretton Woods agreement?
Why does the US borrow money it can print?
What monetary event happened in 1971?
Why was it made illegal to hold gold in 1933?
What is fractional reserve banking?
Why do governments prefer fiat money?
Who benefits from “setting” interest rates?
What is the M1 money supply?