Question
In the nineteenth century, the Canadian government had difficulty getting banks and the public to accept the penny, which had been introduced a few years
In the nineteenth century, the Canadian government had difficulty getting banks and the public to accept the penny, which had been introduced a few years before. As a result, the government offered pennies for sale at a 20-percent discount. One account of this episode describes what the Canadian government did as "negative seigniorage." SOURCE: Nicholas Kohler, "A Penny Dropped," macleans.ca, January 14, 2011. Seigniorage is the OA. face-value of the fiat money. OB. government's revenue from issuing fiat money. C. government's profit from issuing fiat money. OD. government's cost of issuing fiat money. The Canadian government's selling pennies at a 20-percent discount could be considered as OA. "negative profit" because the cost of producing pennies was lower than its face-value. OB. "break-even" because the cost of producing pennies was equal to its sales revenue OC. "negative seigniorage" because the cost of producing pennies was higher than its face-value. OD. "super-normal profit" because the cost of producing pennies was higher than its sales revenue. pl 8
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