![]() Tory MPs seemed to have a slightly better idea, with 19% answering correctly, compared to only 5% of Labour MPs.Īs explained in the ‘ Money creation in the modern economy’ report published by the Bank of England in 2014, most money takes the form of bank deposits, which are mostly created through commercial banks making loans: “Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.” The most recent figures suggest that 97% of money exists as bank deposits, with only 3% created by the Bank of England and Royal Mint as cash.ħ0% of MPs incorrectly believed that only the government has the authority to create all new money – including the electronic money in personal bank accounts – with only 23% knowing this to be false, and 6% answering ‘don’t know’. 62% thought this was false, while 23% responded ‘don’t know’. Only 15% of MPs were aware that new money is created when banks make loans, and existing money is destroyed when members of the public repay loans. We commissioned polling company, Dods, to give a cross-section of MPs four statements about the UK’s money and banking system and to ask whether they’re true or false. The poll finds that only 15% of MPs are aware of how most money is created in the modern economy. ![]() ![]() The results of a new poll of MPs reveal a worrying lack of understanding of the UK’s money and banking system across the House of Commons. ![]()
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