11-16-2009, 10:17 PM
âThis is an indisputable fact that all governments spend money. Some of this spending is to buy goods and services (such as roads and police), and some is to provide transfer payments (for the poor and elderly, for example). The revenue raised through the printing of money is called seigniorage. The term comes from seigneur, the French word for âfeudal lordâ. In the Middle Ages, the lord had the exclusive right on his manor to coin money. Today this right belongs to the central government, and it is one source of revenue.â
<b><font color="blue">Refer to the above scenario; one method of government to finance its spending is seigniorage, mention two other ways through which government can finance its spending</font id="blue">.</b>
<b><font color="blue">Refer to the above scenario; one method of government to finance its spending is seigniorage, mention two other ways through which government can finance its spending</font id="blue">.</b>
