If the Cost of Producing Coins Is Lower Than the Face

question 70

Multiple Choice

If the cost of producing coins is lower than the face value of the coins,then the government receives revenue called

• A)token money,and produces token coins
• B)seigniorage,and produces fiat money
• C)token money,and produces fiat money
• D)seigniorage,and produces token coins
• E)token money,and produces seignior coins

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Definitions:

Check 21 Act

A law that allows banks to process checks electronically, speeding up check clearing and reducing the need for physical transportation of checks.

Substitute Checks

Paper copies created from an original check that are legally equivalent for banking purposes, allowing for electronic processing.

Truncate

To shorten something by cutting off a part of it, commonly used in the context of modifying data, strings, or numerical values in computing.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time.