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SOURCE ROOM

How are banknotes put into circulation from the Bank of Japan? Also, how is the amount of banknotes issued determined?

Bank of Japan (Tell me! Nichigin)

Claims Supported by This Source

  1. Issuance of banknotes = Financial institutions withdraw funds from their current accounts at the Bank of Japan and receive them as cash at the Bank's counters.
  2. The amount of banknotes issued is determined by the public's demand for them.
  3. Banknotes are financial assets that do not bear interest but are extremely safe and liquid.

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