The Currency of Camelot Is the Noble

Multiple Choice

The currency of Camelot is the noble.King Arthur orders the minting of a ten-noble gold coin,but it costs only seven nobles to mine and process the amount of gold in the coin.Which of the following statements is true?

A) Individuals outside the government will have an incentive to melt down the coin and use its contents,rather than its face value,in exchange.
B) King Arthur has an incentive to melt down the coin and use its contents,rather than its face value,in exchange.
C) The government loses seigniorage every time it spends new coins.
D) The government earns seigniorage every time it spends new coins.
E) The people of Camelot gain seigniorage on every private transaction.