The Currency of Camelot Is the Noble

question 50

Multiple Choice

The currency of Camelot is the noble.King Arthur orders the minting of a ten-noble gold coin,but it costs only seven nobles to mine and process the amount of gold in the coin.Which of the following statements is true?

• A)Individuals outside the government will have an incentive to melt down the coin and use its contents,rather than its face value,in exchange.
• B)King Arthur has an incentive to melt down the coin and use its contents,rather than its face value,in exchange.
• C)The government loses seigniorage every time it spends new coins.
• D)The government earns seigniorage every time it spends new coins.
• E)The people of Camelot gain seigniorage on every private transaction.

---

Definitions:

U.S. Government

The federal government of the United States, composed of three branches: legislative, executive, and judicial, established to govern the country as outlined in the U.S. Constitution.

Grand Alliance

The coalition of nations, including the United Kingdom, Soviet Union, and United States, that allied to oppose the Axis powers during World War II.

Germany

A country in Central Europe known for its rich history, contributions to art, science, and philosophy, and its pivotal roles in both World War I and World War II.

Russia

The largest country in the world by area, spanning Eastern Europe and northern Asia, known for its rich history, cultural heritage, and as a major global political power.