answersLogoWhite

0


Best Answer

At least in the U.S. that is not a true statement. It costs only a few cents to make a paper bill, so the production cost is always less than the bill's value.

Perhaps you are thinking of small-denomination coins such a the cent or nickel, which use enough metal to be worth more than their actual face value (depending of course on how much the metal costs change at any given time).

You also may be thinking of the problem with $1 bills due to the huge demand for them. Even though each bill only costs 6 or 7 cents to make, $1 bills wear out so quickly (18-20 months) that the government had to open a second printing plant in Texas just to keep up with demand. That's why some people are calling for the $1 bill to be abolished and replaced with the new $1 coins that will last 30-50 years instead.

User Avatar

Wiki User

βˆ™ 15y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Why paper money has greater value than its production cost?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is the value of paper money than the value of paper itself?

Money is spent for making paper, your opinion is invalid.


What is value of 1874 ten cents paper money?

Value of 1874 series 10 cent paper money


Will coins hold their value better than paper money?

I would say yes. When has paper money ever held it's value?


What is paper money issued by the government called?

Fiat money. This is money that has no tangible value. An alternative is gold, which in itself has tangible value.


What is the value of 1945 10 yen Japanese paper money?

Paper money value goes up with the condition of the note. In the related links box below, I posted the information.


What is give money its value?

Money, especially paper money, is backed by the gold reserves of the issuing bank


When a government prints paper money without gold to back it up, _______ results?

The money is no good. It is just paper. Money needs to have a solid value behind it.


When a large amount of paper money was made this caused value to?

fall


How much money can you get for recycling paper?

Paper, like most recyclable commodities, has a set value per ton as waste paper. Find out what the value per ton of waste paper is in your area, and that's how much you can get for it.


What is the value of old Russian paper money?

The value would depend on the date of issue, denomination and condition.


Did the issuance of huge quantities of paper money cause the value of money to rise or decrease?

rise sanju


What was the value of southern money after the civil war?

No more than the paper its printed on.