Which statement about seigniorage is correct?
A) Seigniorage is not a major source of revenue for the government in any modern economy.
B) Seigniorage is a major source of revenue for the government in most modern economies.
C) Seigniorage is not a major source of revenue for the government in most modern economies but is relatively important in the United States.
D) Seigniorage is a major source of revenue for the government in most modern economies but is relatively unimportant in the United States.

Question

Quizplus · Accepted Answer

Seigniorage is the income earned by a government from printing money. While it is not a major source of revenue for most modern economies, it is relatively important in the United States. The Federal Reserve System serves as the central bank of the United States and generates a significant amount of revenue through seigniorage. Therefore, option C is the correct statement.

Which Statement About Seigniorage Is Correct