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Asked a question 2 years ago

The term Seingnorage refers to?

Where am I?


Seigniorage is the difference  between the presumptive value of cash, for example, a Rs 100  greenback, and the expense to create it.

In simpler words, difference between the face value of coins and their production costs.

 Seigniorage might be considered income for an  government authority  when the cash it makes is worth more than it expenses to deliver

In few circumstances, the creation of money can bring loss  rather than an increase for the authority  making the cash. This loss is all the more normally experienced in the creation of coins on the grounds that the metal used to deliver the coin has inalienable worth. 

This worth, regularly called the melt value  might be higher than the division it initially spoke to; or, when joined with creation costs, may bring about a misfortune.