"Seigniorage" is a source of revenue for central banks earned from_____________?
Correct answer: B. Issuance of notes and coins
- A. Issuance of Debt securities
- B. Issuance of notes and coins
- C. Dollar Reserves
- D. All of above
Explanation
Seigniorage is the revenue obtained by issuing currency because the production cost of notes and coins is far below their face value. Debt issuance and foreign-exchange reserves are not seigniorage.
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