If we look back in history, why has the role of creating money fallen to central banks?
What will be an ideal response?
Historically central bank money has been seen as more trustworthy than the money issued by emperors, kings or queens. Often times rulers would have a strong incentive to default on their notes (debts) rendering the currencies they issued as worthless. Early central banks on the other hand, kept adequate reserves (usually gold) to redeem their notes.
Economics
You might also like to view...
Differences in what can explain the wage gap between U.S.-born and foreign-born workers?
(a) Culture (b) Schooling (c) Urbanization (d) All of the above
Economics
Labor cost on an average accounts for about _____ percent of the total cost of production
a. 10 b. 30 c. 50 d. 70 e. 98
Economics