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Why is the government unable to print an unlimited supply of bank notes?
Wiki User
∙ 12y ago
The governments money is tied to the economic and actual weath of the country.
If the government did print unlimited money this would de-value the money and make it worth less. This leads to hyper-inflation as is being witnessed in Zimbabwe and what was witnessed in Germany after the wall street crash.
Wiki User
∙ 12y ago
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Why does the government print only a certain number of paper notes and not as many it likes arbitrarily?
The amount of money printed must not exceed the balance of payments in the governments coffers. The paper notes and coins are a 'promise' by the government to pay the equivalent in gold of every note and coin in circulation.
What is clean note policy?
In clean note policy, there is no currency exchange rate manipulation, no excess supply of currency notes,swapping etc. those which control the financial market artificially.
What is difference between a red seal two dollar bill and one without?
Most bills with red seals are an older form of currency called U.S. Notes. U.S. Notes were essentially a parallel form of currency to Federal Reserve Notes, except they were issued directly by the government without involving the Fed. $2 and $5 were the most common U.S. notes, but there were also some $10 and $100 bills issued too. In the mid-1960s the government decided there was no purpose in having two parallel currency systems because they were entirely interchangeable. The Federal Reserve system was given sole authority over currency distribution and production of U.S. Notes ended around 1967. All currency printed after that time has been in the form of Federal Reserve Notes which carry a green seal. As far as value is concerned, $2 Fed notes are only worth face value if received in change. $2 U.S. notes are worth a small premium (50c or $1) to collectors, mostly because they're older and less common, but are otherwise entirely equivalent to their green counterparts.
What enables the government to make up a budget deficit?
Deficit financing is defined as financing the budgetary deficit through public loans and creation of new money. Deficit financing in India means the expenditure which in excess of current revenue and public borrowing. The government may cover the deficit in the following ways.By running down its accumulated cash reserve from RBI.Issue of new currency by government it self.Borrowing from reserve bank of India and RBI gives the loans by printing more currency notes.
Where are currency notes made?
In India currency notes are made in Nasik.
Is the most common form of financial securities issued by the government?
Treasury Notes / T-notes A+
What has the author G E Fenety written?
G. E. Fenety has written: 'Political notes and observations, or, A glance at the leading measures that have been introduced and discussed in the House of Assembly of New Brunswick' -- subject(s): Politics and government 'Water works for Fredricton' -- subject(s): Water-supply 'Water works for Fredericton' -- subject(s): Water supply 'Political notes' -- subject(s): Politics and government 'The lady and the dress-maker, or, A peep at fashionable folly' 'Political notes and observations, or, A glance at the leading measures that have been introduced and discussed in the House of Assemby of New Brunswick'
What handy office supply was invented by Arthur Fry and Dr Spencer?
post-it-notes
What does annotate meen?
Annotate mean to add explanatory notes to or supply with critical comments.
How safe is GMAC Demand Notes?
GMAC demand notes are not a reliable bet until the Government is no longer a stakeholder, when the government is no longer rewriting contracts, and not until after the bankruptcy is complete.
Why is the government requiring people to declare where they got 1000- guilder notes In the book Anne frank?
The government required people to declare where they got 1000-guilder notes in Anne Frank's diary because they suspected that these notes were obtained through illegal means, such as black-market activities. By tracking the source of these high-denomination notes, the government aimed to uncover and prosecute individuals engaging in illegal activities during World War II.
Why is a boy of 14 years unable to sing songs at higher notes?
A boy of 14 years is unable to sing songs at higher notes possibly because his voice has broken. At the onset of puberty, the hormone testosterone is responsible for deepening a boy's voice.At about the age of 14, most boys would have entered puberty. Change in voice is one of the results of the transition into pubescence.
What is fractional currency and is it still used today?
Fractional currency was notes issued by the US government during and after the Civil War. Usage was stopped for these notes in 1876.
What government security pays a fixed rate of interest every six months until they mature in two to ten years?
Treasury notes
Why does a 1953 5 dollar red seal indicate US Note rather than Federal Reserve?
U.S. Notes were first issued back in the 1860s. They were among the first currency not backed dollar-for-dollar with gold or silver, but simply with the "faith and credit" of the government. The concept was, and still is, that a strong government can be relied upon to try to maintain the purchasing power of its currency, and so long as individual citizens rely on that, precious metal backing is not always necessary. Unbacked currency also gives the government the ability to expand or contract the money supply in an effort to smooth out economic cycles. U.S. Notes were issued directly by the Federal Government, alongside silver and gold certificates, and eventually Federal Reserve Notes issued by the central bank. When certificates were discontinued, U.S. Notes and FRN's became effectively the same form of unbacked currency. The government then decided to combine all currency production and distribution under the central bank to eliminate duplication of effort. Because many more FRNs were in circulation than U.S. Notes, the latter were discontinued in the early 1960s.
Where to buy cheap post it notes online?
You can buy cheap post it notes on line from many stores. Many office supply stores have them in stock online for reasonable prices, would be a good start to check there.
What is a dollar bill with a small star after the serial number?
Historically, the "star" notes are released into the money supply to take the place of notes that are found to be defective after printing (and destroyed). These place-holder notes maintain the count of notes in a given serial number range. Star notes are considerably more scarce for any given series date than are ordinary notes. But not all will command a premium value above the face value of the bill.
