Some types of plastic money include the Canadian dollar, the Romanian leu and the Papua New Guinean kino. These banknotes are made of a polymer that allows for greater security against counterfeiting by creating intricate designs that are difficult to imitate. The first known testing of polymer banknotes occurred during the 1980s, when Canada was developing and evaluating them to replace its previous currency.Continue Reading
As of 2014, polymer banknotes are in full use by Australia, Bermuda, Brunei, Canada, New Zealand, Papua New Guinea, Romania and Vietnam as well as more than a dozen other countries in a limited capacity. Some other countries have released commemorative banknotes that are not used in normal circulation.
Polymer banknotes possess a large number of security features, including windows and the possibility to allow light to shine through them to reveal further security details. The ability to counterfeit these notes is hindered by the complexity of the notes, resulting in notable drops in counterfeiting in those countries that employ them.
The plastic used to create these notes is called "Guardian polymer," serving the specific purpose of use in currency. This polymer allows for shadow images in the form of watermarks, embedded security threads and complex background patterns.Learn more about Economics
Net factor income from abroad is the amount of money made in a country other than one's legal home country, according to Investopedia. This term applies to income made by either an individual or a business and refers to income made abroad that is then sent back to the home country. This income can come in the form of wages or investments.Full Answer >
Total utility is maximized when consumers find a combination of goods and services that provides the most use and satisfaction for the money spent. The pursuit of total utility is an ongoing process for consumers who seek to maximize satisfaction despite limited financial resources to buy new goods and services.Full Answer >
Inflation can be a problem when it is unexpected or very high, which can result in economic instability and people being afraid to spend money, which hinders economic growth. Furthermore, inflation can make products and services unaffordable to those on fixed-income. It can also cause creditors to lose money and create a negative impact on a country's trade.Full Answer >
A government budget deficit can affect the economy in many ways, most notably it may force the government to print more money to finance the deficit, decreasing the value of the nation's currency. However, running deficits can be beneficial in the short term, as it allows the government to increase GDP and continue to provide the services that allowed it to secure loans from other governments initially, according to About.com.Full Answer >