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What determines the amount of money a country can print?
A countries central banking system generally decides what amount of money a country can print. Contrary to popular belief, gold or precious metals are irrelevent and uncessary to give money a value. The only reason that gold (or other metals) have value is because people have accepted them as having value. Just as people may accept that an apple might have some sort of value or a banana might have some sort of value. Gold (and other metals) are a scarce resource and therefore had been accepted as a medium of echange long before paper money.
A medium of echange is necessary for two reasons.
1. People need to have a base from what to compare things to. That is, it is difficult to determine how many apples equal a banana or how many cars equal an airplane for example. We do however know that say an apple is worth $.50 and a banana is worth $.75.
2. People need a way to store their productive efforts so that they can be used in the future as necessary.
A country should generally wish that their paper money is still a scarce resource (that is the country's bank controls the amount printed and makes it difficult to copy). In this way money can be used to reimburse an individual for his production efforts and then he or she can use this money to pay someone else for producing something else they don't have but they need.
Generally speaking a reputable country will produce enough bills and coinage to 'meet demand' - naturally money is always 'in demand' so this means replacing bills damaged through use. In the case of the US it should be noted that most 'money' doesn't exist in the form of money, and as a matter of fact most currency is actually held outside the country by foreigners.
If too much money is printed or created holders may fear loss of value from dillution and start selling dollars to buy the currency of other countries. Like a stock the dollar will fall until foreign investors support it by buying American food, corporations, resources, and goods and services again.
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The amount of money a business has to spend on accounting determines the number of ledgers used in an accounting system?
Because money is like diamonds. If there were more diamonds in the world they would be cheaper no doubt, because they would be less rare. In addition, competing companies woul…d battle to sell at the lowest price. Money is the same, the more you print the less value it has. Why do you think the United Kingdom pound sterling has strong value? Because the British are smart and know when to stop printing and when to start to balance out with the needs of banks and business.
Under the Treaty of Versailles, the Germans were required to pay reparations to the winning Allied countries, primarily France. The amounts were denominated in French Francs w…hich were pegged at a fixed rate of exchange against the German Mark. The German Chancellor of the Exchequer believed that by printing enough Deutschmarks, there would be enough money in circulation to pay off the French and have enough left over to finance the day-to-day needs of the German people, their businesses, and have enough left over to finance future business expansion. It was a rather naive view of how currencies work together to derive a "real" value by comparing the rates of exchange with many currencies. When valued by the multiple exchange rate process, the German currency became almost worthless among European businesses and the German people suffered with out-of-control inflation and a near-total inability to trade with other countries.
Great Britain, France, And Russia
The first country to print paper money was China.
Money is printed at the MINT
America's currency is printed on a cotton based paper. It started off being printed with steam presses in the basement of the Department of Treasury. But still the full compos…ition is a government secret to prevent the production of a "legit" counterfeit bill(s). There is a mixture it is doused in to give the bills extra strength.
It's National Income.
It depends on whether it has been copy-righted and whether they have permission. For example, the Australian Mint prints money for several countries (under licence) including …Australia. These other countries are island nations such as Fiji who don't have the infrastructure to print their own 'high tech' anti conterfeiting money. Many countries 'copy' the basic design of a country that once ruled over them. British money is probably the most copied around the world due to Britain having had the biggest empire. The name of British money has also been copied and the currency Pound, shilling and penny are still used in various countries. The currency Dollar most likely came from the European Dolare (I think it was originally Spanish) and the word is used in many countries including U.S.A.
Gross Domestic Product (GDP)
it costs money to print money and it costs a lot of resources they can but the last time a country just decided to print money was Germany diuring world war 1 the more money …a counntry prints the less the money is worth in Germany during world war 1 they printed so much more money to reverse the war debt that they cased inflation which is more money of less value because of the inflation people would take a wheelbarrow full of money just to buy a loaf of bread and some milk because the money is so worthless.
It's deterimed by the Federal Open Market Committee, which is part of the Federal Reserve System.
How does an insurance company determine the amount of money to give you for your car when it's totaled in an accident?
The insurance company will only pay the 'book' value of the vehicle as if it were in perfect condition unless damage prior to the accident was discovered and that damage will… be deducted from the 'book value'.
Not all countries print their own money. A country can only print money if it is in control of its currency like Japan and the US. One country that cannot print money is G…reece because they are not in control of the Euro.
Countries can print more money, and they do! However if they print too much money, then its value falls (as with anything having an excess of supply) triggering inflat…ion. One of the worst examples of this was post World War 1 Germany, where they printed enormous amounts of money (even going so far as to reprint higher denominations over existing bills) to pay the reparations to the Allies demanded in the treaty of Versailles. The result was a rampant exponential inflation followed by a depression that spread virtually worldwide, becoming the "Great Depression" when it reached the United States. This inflation/depression was a significant factor in the rise of Adolf Hitler's political power and the start of World War 2.