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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.
What else can I help you with?
Which countries can print money?
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 Greece because they are not in control of the Euro.
Why does a country borrows money from another country and not just print more?
It messes up the economy.
Why is the government unable to print an unlimited supply of bank notes?
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.
Who the first to print money?
Chinese?
Who can legally print money?
In the US, it is the US Government alone that has the authority to print currency.
Which countries can print money?
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 Greece because they are not in control of the Euro.
What country print Ghana money?
Germany
Why don't we print an infinite amount of money?
We don't print an infinite amount because that would generate inflation. If we printed an infinite amount of money, the currency would become cheap and worthless.
Can each county print its money?
No. Only the central bank of the country can print money. Counties cannot print their own money. They have to get it from the central bank/government. For ex: Reserve Bank in India and the Federal Reserve in the USA are the respective entities that are entitled to print money in their countries (India and USA). Each country has a corresponding entity that prints money for the country's use.
How do you print out your monthly amount?
To print out a monthly amount, you can do so by looking at a bank statement. You want to look at income and outgoing money. Print it all out on one page.
Which country was the first to print paper money?
america
Why does a country borrows money from another country and not just print more?
It messes up the economy.
What is a bank's own printed money called?
The Bank Can't Print its own money because only the treasury can print or make money . Every country would have a central governing authority for banks and they print paper and mint coin money.
How do you print out your monthly amount you receive on your Ohio Direction Card?
In order to print out the monthly amount you receive on your Ohio Direction Card you will need to go to their website. From there you can log in and access the amount of money you have available to use. You can print off a screenshot for your records.
If the government is out of money why cant they just print up more?
Because that causes inflation which lowers the value of the money and you end up with the same or lower total amount of value for your money.
How much money is printed each day?
Factories print about 5million dollies each day in one country or state.
How much money can RBI print in one year?
unlimited is controlled mainly by amount of money RBI wants to be there in market. gold standard is gone. money is printed by taking in account of supply and inflation.
