The ability of a country to profit from its ability to print money is known as:
A) profiteering.
B) dollarization.
C) seignorage.
D) inflation.

Question

Quizplus · Accepted Answer

Seignorage refers to the profits that a government can make by printing money that has a higher value than the cost of printing it. This can be a significant source of revenue for a government, but it can also lead to inflation if too much money is printed. Profiteering is generally considered an unethical practice of taking advantage of a situation to make excessive profits. Dollarization refers to the use of a foreign currency, such as the US dollar, as the official currency in a country instead of the country's own currency. Inflation refers to a general increase in prices and decrease in the value of money in an economy over time.

The Ability of a Country to Profit from Its Ability