Seigniorage refers to
A) the extra tax revenue received by governments when people are pushed up into higher tax brackets.
B) the loss of purchasing power of income due to higher prices.
C) the revenue a government receives by issuing money.
D) the profits that corporations realize on their foreign direct investments.

Question

Quizplus · Accepted Answer

Seigniorage refers to the revenue a government receives by issuing money. This revenue is generated by the difference between the face value of the currency and the cost of producing it. In other words, governments can "create" money at a low cost, and then use it to pay for government expenditures or reduce debt.

Seigniorage Refers to