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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.

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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.

Related Questions

Who issues currency notes in India on behalf of the central government?

In India, currency notes are issued by the Reserve Bank of India (RBI) on behalf of the central government. The RBI has the sole authority to issue and manage the supply of currency notes in the country, ensuring that the currency system operates smoothly. The notes carry the signature of the Governor of the RBI and are backed by the government’s promise to pay the bearer.


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'


Is the most common form of financial securities issued by the government?

Treasury Notes / T-notes A+


What does annotate meen?

Annotate mean to add explanatory notes to or supply with critical comments.


What handy office supply was invented by Arthur Fry and Dr Spencer?

post-it-notes


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.


How many sticky notes are sold each year?

It is difficult to provide an exact figure for the number of sticky notes sold each year. However, companies like 3M, which produces Post-it notes, are known to sell billions of sticky notes annually, making them a popular and widely used office supply.


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


How do you get altissimo on the sax?

Altissimo notes have unlimited high ranges that can only be reached by skilled players with developed lips. Most fingering charts have the first few altissimo fingering