Archive | Currency

Major Principles of Note Issue | Monetary Policy

There are various principles of issue of currency notes. Two common principles are the banking principle and the current principle. These two principles governed the issue of notes in former times, but at present various other principles have been evolved. We may well start with the two ancient principles of note issue: 1. The Banking Principle: It is not at [...]

By Nipun S|2017-01-13T05:55:16+05:30January 13, 2017|Currency|Comments Off

Alternative Systems of Currency Note Issue: 5 Systems

The following points highlight the five alternative systems of currency note issue. System # 1. The Fixed Fiduciary System: This is one of the oldest systems of controlling note-issues. Under this system, a country can issue a certain quantity of notes without any reserve, i. e., without gold or silver backing. The upper limit to this quantity is called fiduciary [...]

By Sanket Suman|2015-10-26T12:45:52+05:30October 17, 2015|Currency|Comments Off