Paper money. Paper money, as a rule, is intended for circulation solely in the country in which it
is issued. In countries where paper money is not backed by gold or silver, or is backed only by
silver, or by only a small percentage of gold, paper money is depreciated, or in other words, is at a
discount. If 100 gold dollars cost 200 paper dollars gold money is at a premium of 100 per cent
and paper money is at a discount of 50 per cent; again, if 100 silver dollars cost 150 paper dollars
silver money is at a premium of 50 per cent and paper money is at a discount of 33 1-3 per cent.
is issued. In countries where paper money is not backed by gold or silver, or is backed only by
silver, or by only a small percentage of gold, paper money is depreciated, or in other words, is at a
discount. If 100 gold dollars cost 200 paper dollars gold money is at a premium of 100 per cent
and paper money is at a discount of 50 per cent; again, if 100 silver dollars cost 150 paper dollars
silver money is at a premium of 50 per cent and paper money is at a discount of 33 1-3 per cent.
 | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  |
| Copyright 2000 - 2010 by Dictionary of Accounting All Rights Reserved Accounting Resources Hunting Knives, Military Acronyms Training Gun Dog |