How much do you know about our money?

The Reserve Bank, like many central banks around the world, is considering introducing a Central Bank Digital Currency. This is a change to our monetary system of a magnitude not seen in generations. How well do you understand our current money system?

Take our 6-question survey to find out. Once you’ve answered the questions and got your score, take a look at the information below which explains more about each answer.

1. Where do banks get most of the money to make loans?

People who deposit money at the bank
The Reserve Bank
Overseas
They create it out of nothing

2. Who creates the vast majority of the money in New Zealand?

The government
The Reserve Bank of New Zealand
Private banks (ANZ, BNZ, etc.)
Others
Don’t know

3. New Zealand uses both cash (notes, coins) and electronic money (eftpos, internet banking, credit cards). What approximate mix of cash and electronic money is used in New Zealand?

2% cash; 98% electronic
50% cash; 50% electronic
98% cash; 2% electronic

4. Would you be happy with a financial system proposal whereby private businesses create and allocate the majority of the New Zealand’s money supply according to what made them the most profit?

Yes
No
Don’t know

5. Once you deposit money in a bank, who owns it?

You
The bank

6. Money is destroyed when people repay their loans.

True
False