Seignorage is defined as which of the following?

A) the part of a budget deficit financed by the issuance of bonds sold to the private sector
B) revenue from money creation
C) the increase in income tax revenues that occurs during a hyperinflation
D) the increase in income tax revenues that occurs as a result nominal income tax brackets not being adjusted to changes in
E) the part of a budget deficit financed with foreign lending

ANSWER:

B) revenue from money creation