Government makes money (literally). But then there must be something productive done for a society to prosper so people serve each other through some service or product. However as such I or you cannot create money to pay for someone's service/product. How is money created by governent released in market, on what basis government releases money? What is role of RBI ? when government releases moeny in market is it buying something in return but then who does it buy from ? Somehow, somewhere services/products created by society are finally getting to RBI (so that it can release money) but how ? Please explain.
Best answer:
Answer by vampire_kitti
money is released through banks. some money is made to replace old, torn money. other money is made for new gold mined. your money is literally a representation of how much government gold you own, that's why rising gold prices are the first sign of inflation.
Give your answer to this question below!
留言列表
