Discussion Questions:U.S. paper currency is made with several features that are difficult to counterfeit, including a security thread, color-shifting ink, microprinting, a portrait, a watermark, and a fine-line printing pattern. As duplication technology, however, continually improves and more and more counterfeits are circulated, what will happen to the following?The value of money circulated.
The volume of cashless transactions.
The amount of money the U.S. Treasury spends to introduce additional security measures.
In November 2008, the Fed began to pay interest on reserves held at the bank. What effect would you expect on excess reserves?
Did banks generally favor or oppose this action?
Would central banks generally favor or oppose this action?
What effect did this probably have on interest rates paid by banks?
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