How and why a country print money?
Question by Unknown: How and why a country print money?
Why a country print more money?
What is the standard they follow to print money?
How a country’s central bank know the Demand for money?
Does its based on money circulation by increasing in business?
Answer by Murphy
A country prints money because of its acceptability. A central currency means convenience and that it is accepted all around the nation. Each country has different standards in printing its currency to avoid counterfeiting and making the money durable (so the banknotes don’t get damaged easily). As for how they measure the demand for money, this is measured through many different indicators, such as inflation. Money should always reflect scarcity- if there is too much money, money would be worthless within an economy (such as in Zimbabwe where one can easily become a trillionaire!).
What do you think? Answer below!