What is seigniorage?

Question

Quizplus · Accepted Answer

Seigniorage refers to the revenue earned by the government through the process of minting or printing currency. It is the difference between the value of the currency as money and the cost of producing it. In other words, it is the profit earned by the government from the creation of new money. Option B and C are incorrect, as they refer to fines and illegal practices related to currency, respectively. Option D is also incorrect, as it refers to a type of money that is based on a commodity such as gold or silver, which is not directly related to seigniorage.

What Is Seigniorage