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In which of the following situations can the U.S. government earn seigniorage from the creation of money? 1. The money consists of reserve accounts that

In which of the following situations can the U.S. government earn seigniorage from the creation of money? 1. The money consists of reserve accounts that are held by banks at the Federal Reserve and pay only a low rate of interest. 2. The money consists of coins whose metallic value equals their face value. 3. The money consists of dollar bills of various denominations issued by the Federal Reserve.

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