Seignorage refers to the:
A) problems faced by Social Security as the population ages.
B) government's right to print money.
C) problems senior citizens face in retirement.
D) problems created when the government prints too much money.

Question

Quizplus · Accepted Answer

Seignorage refers to the profit that a government makes by printing and circulating its currency. The difference between the cost of producing the currency and its value is the seignorage revenue. Therefore, it is the government's right to print money, making option B the correct answer. Options A, C, and D are incorrect.

Seignorage Refers to The