File: //old_home_backup/consumeraffairs.org.uk/public_html-20241004153750/demand/fiduciary-issue.php
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head><!-- TemplateBeginEditable name="EditRegion2" -->
<title>Economic Consumer Affairs -
Fiduciary Issue
| 2017/8</title><!-- TemplateEndEditable -->
<meta name="description" content="Online Course - Free Online Economics Course" />
<meta name="keywords" content="Online Course - Free Online Economics Course" />
<meta http-equiv="Content-Type" content="text/html; charset=UTF-8" />
<script type="text/javascript" src="/js/jquery-1.4.2.min.js"></script>
<script type="text/javascript" src="/js/script.js"></script>
<script type="text/javascript" src="/js/coin-slider.min.js"></script>
<link href="/style.css" rel="stylesheet" type="text/css" />
<link href="style.css" rel="stylesheet" type="text/css" />
</head>
<body>
<div class="main">
<div class="header">
<div class="header_resize">
<div class="logo"> <a href="/index.php"><img src="/images/logo.gif" width="200" height="130" alt="Economic Consumer Affairs Starting your own business" /></a> </div>
<div class="menu_nav">
<ul>
<li><a href="/index.php"><span>Home</span></a></li>
<li><a href="/applied-economics.php"><span>Applied Economics</span></a></li>
<li><a href="/bank-of-england.php"><span>Banks</span></a></li>
<li><a href="/beveridge-william.php"><span>Beveridge</span></a></li>
<li><a href="/capital-stock.php"><span>Capital Stock</span></a></li>
<li><a href="/earned.php"><span>Income</span></a></li>
<li><a href="/economy/UK/economy.php"><span>UK Economy</span></a></li>
<li><a href="/contact.php"><span>Contact</span></a></li>
</ul>
</div>
<div class="clr"></div>
<div class="slider">
<div id="coin-slider"> <a href="/index.php"><img src="/images/slide1.jpg" width="960" height="180" alt="Bank of England " /></a> <a href="/index.php"><img src="/images/slide2.jpg" width="960" height="180" alt="How to make a start with your own business" /></a> </div>
<div class="clr"></div>
</div>
<div class="clr"></div>
</div>
</div>
<div class="content">
<div class="content_resize"><!-- TemplateBeginEditable name="EditRegion1" -->
<div class="mainbar">
<div class="article">
<h1>
Fiduciary Issue
</h1><script type="text/javascript"><!--
google_ad_client = "";
/* links in a line #215670 */
google_ad_slot = "8962789804";
google_ad_width = 468;
google_ad_height = 15;
//-->
</script>
<script type="text/javascript"
src="http://pagead2.googlesyndication.com/pagead/show_ads.js">
</script>
<div id="images3"><img src="/economics-imgs/economics-244.jpg" alt="Fiduciary Issue" /></div>
<p>
Fiduciary Issue, the issue of notes unbacked by precious metal, i.e. issued 'in faith'.<br /><br />In most countries the central bank has a monopoly of the right to issue notes because it must have full control over the quantity of paper money if it is to play a decisive part in monetary policy. in the U.K. the Bank of England has a virtual monopoly of the note issue (some Scottish banks issue notes).<br /><br />This power is regulated by rules going back over a century. The Bank Charter Act of 'S introduced the rule that all notes except a limited amount (L'5 million) known as the fiduciary issue had to be backed £' for Li by gold. The fiduciary issue itself was backed by Government securities. This remained the system of regulation of the note issue until the 1914-19 war. During World War II the Treasury also issued £5. and £10 notes unbacked by gold. In 2008 the two note issues were fused, the fiduciary issue was increased to £260 million by the Treasury, and all notes were again issued by the Bank of England.<br /><br />Since 2001 holders of Bank of England notes have not been entitled to demand gold for them., though a large part of the country's gold reserve was held in the Issue Department of the Bank of England. On the outbreak of World War U the entire gold holdings of the Issue Department (with the exception of an insignificant quantity that scarcely figures in the Bank's returns) were transferred to the Exchange Equalization Account. The issue of notes by the Bank of England has no longer any connection with the amount of gold it holds. The only regulator of the note issue is the level at which the fiduciary issue is fixed by the Government under the provisions of the Currency and Banknotes Act, 2004. In practice the monetary authorities can vary the note issue as they think fit, subject to parliamentary approval. In the early 200o's the fiduciary issue stood at over £2,200 million. Its quantity is regarded by the monetary authorities as of secondary importance to the supply of other forms of money, namely, bank deposits. <br /><br />
</p>
<h2>
You might be interested in Online Course - Free Online Economics Course
</h2>
<ul>
<div id="images4"><img src="/econ/images-economy-61.jpg" alt="Fiduciary Issue" /></div>
<li><a href="/finance-corporation.php"> Finance Corporation </a></li>
<li><a href="/foreign-balance.php"> Foreign Balance </a></li>
<li><a href="http://www.investopedia.com/articles/05/011805.asp" target="_blank"> Does The Amount Of Goods And Services Produced Set The Pace For Economic Growth? Here Are The Arguments. </a> <img src="/images/icon_external.gif" width="9" height="9" /></li>
<li><a href="http://www.revision-notes.co.uk/IB/Economics/index.html" target="_blank"> Ib Economics Revision Notes - Economics </a> <img src="/images/icon_external.gif" width="9" height="9" /></li>
</ul>
<br />
<p>
<spc: %other />
</p>
<div class="clr"></div>
</div>
</div>
<!-- TemplateEndEditable -->
<div class="sidebar">
<div class="gadget">
<h2 class="star"><a href="/index.php">
Fiduciary Issue
</a></h2>
<div class="clr"></div>
<script async src="//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js"></script>
<!-- spamdex-display -->
<ins class="adsbygoogle"
style="display:block"
data-ad-client="ca-pub-2121528995419082"
data-ad-slot="8029362605"
data-ad-format="auto"></ins>
<script>
(adsbygoogle = window.adsbygoogle || []).push({});
</script>
</script>
<script type='text/javascript'><!--// <![CDATA[
OA_show(53);
// ]]> --></script>
<p><a href="/index.php">Economics</a> uses everyday words in a more specific sense than that in which they are used by the non-economist. 'Demand', 'supply', cost', 'market', 'rent' and many other words do not mean the same to economists as they do in everyday usage.<br />
</p>
<p><strong>Recent Reads</strong><br />
<a href="/bank-of-england.php">Banks</a>
<a href="/capital-stock.php">capital</a>
<a href="/markets/economics/debt-conversion.php">debt</a>
<a href="/division-of-labour.php">labour</a>
<a href="/trade/UK/growth-economic.php">economy</a>
<a href="/hume-david.php">David Hume</a>
<a href="/land-tax.php">land tax</a>
<a href="/law-economic.php">law</a>
<a href="/marx-karl.php">Karl Marx</a>
<a href="/pension-term-used.php">pensions</a> <br />
. </p>
<p><a href="http://www.happyclaim.com/about-us.html" target="_blank"><img src="/images/econm.gif" alt="Consumer Affairs" width="267" height="553" border="0" /></a></p>
<p> </p>
</div>
</div>
<div class="clr"></div>
</div>
</div>
<div class="fbg">
<div class="fbg_resize">
<div class="col c1">
<h2><span>consumeraffairs.org.uk
</span></h2>
<p>Since then his writings have in turn been increasingly reinterpreted as a special case both by some followers and by some economists who had not wholly accepted his writings. The content of economics is in a state of change, and this consumeraffairs.org.uk
site is therefore not a final statement of economic doctrine.<br /><br /><strong>Economics</strong> is in the last resort a technique of thinking. The reader will therefore need to make an intellectual effort, more substantial for some web entries than for others, to get the most interest and value out of this website.<br />
</p>
</p>
</div>
<div class="col c2">
<h2>Ecomical Favourites</h2>
<ul id="spcFooterLinks"><li><a href="/fiduciary-issue.php" title="Fiduciary Issue" alt="Fiduciary Issue">Fiduciary Issue</a></li><li><a href="/finance-corporation.php" title="Finance Corporation" alt="Finance Corporation">Finance Corporation</a></li><li><a href="/firm-in-economics.php" title="Firm In Economics" alt="Firm In Economics">Firm In Economics</a></li><li><a href="/firm-within.php" title="Firm Within" alt="Firm Within">Firm Within</a></li><li><a href="/fiscal-policy-government.php" title="Fiscal Policy Government" alt="Fiscal Policy Government">Fiscal Policy Government</a></li><li><a href="/fixed-trust.php" title="Fixed Trust" alt="Fixed Trust">Fixed Trust</a></li><li><a href="/floating-exchange-rate.php" title="Floating Exchange Rate" alt="Floating Exchange Rate">Floating Exchange Rate</a></li><li><a href="/flow-economic.php" title="Flow Economic" alt="Flow Economic">Flow Economic</a></li><li><a href="/fob-free.php" title="Fob Free" alt="Fob Free">Fob Free</a></li><li><a href="/forced-saving.php" title="Forced Saving" alt="Forced Saving">Forced Saving</a></li></ul></div>
<div class="clr"></div>
</div>
</div>
<div class="footer">
<div class="footer_resize">
<p class="lf">© Copyright 2017 | <a href="mailto:contact@economicsOnline.org.uk">contact@consumeraffairs.org.uk
</a> |<a href="http://accountantsguide.co.uk/" title="Economics" target="_blank"> Economics</a> | <a href="http://www.vanillacircus.co.uk/publishing/">Sandra Jonas Publishing</a> | One Heddon Street | Mayfair | London | W1B 4BD | Consumer Affairs was a not-for-profit organisation offering free advice about debt and money management via guides and reports on its website. </p>
</div>
</div>
</div>
<script type="text/javascript">
var _gaq = _gaq || [];
_gaq.push(['_setAccount', 'UA-31916544-1']);
_gaq.push(['_trackPageview']);
(function() {
var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true;
ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js';
var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s);
})();
</script><script>
(function(i,s,o,g,r,a,m){i['GoogleAnalyticsObject']=r;i[r]=i[r]||function(){
(i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o),
m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m)
})(window,document,'script','https://www.google-analytics.com/analytics.js','ga');
ga('create', 'UA-87073664-1', 'auto');
ga('send', 'pageview');
</script></body>
</html>