Seignorage is defined as which of the following?
A)the part of a budget deficit financed by the issuance of bonds sold to the private sector
B)revenue from money creation
C)the increase in income tax revenues that occurs during a hyperinflation
D)the increase in income tax revenues that occurs as a result nominal income tax brackets not being adjusted to changes in
E) the part of a budget deficit financed with foreign lending

Question

Quizplus · Accepted Answer

Seignorage refers to the revenue earned by a government from money creation. It is the difference between the cost of printing or minting currency and the face value of the currency. Therefore, option B is the correct definition for seignorage. The other options are not related to the concept of seignorage.

Seignorage Is Defined as Which of the Following