Seignorage is the:
A) government's cost of printing and coining money.
B) revenue generated by the government's right to print money.
C) money financial institutions make selling government bonds to the Fed when the Fed creates money.
D) revenue the government generates in tax receipts.

Question

Quizplus · Accepted Answer

Seignorage refers to the revenue generated by the government's right to print money. When the government prints money, it effectively creates value out of thin air, and the difference between the value of the money and the cost of producing it is seignorage. This revenue can be used to fund government operations or pay down debt.

Seignorage Is The