Seigniorage is the difference between the face value of a coin and the unit cost of producing it. Positive seigniorage results in revenue for the issuing government, and that revenue can be used to support education and other government-funded services. However, some coins cost more to produce than their value. While this has led some countries, including Finland, to cease manufacturing certain coins, another approach is to alter the composition of some coins so that they are made with relatively inexpensive metals.
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Verbal·Craft and Structure·Text Structure and Purpose
mediumWhich choice best describes the function of the underlined sentence in the text as a whole?
A
It details the rationale behind a particular economic decision made by Finland.
B
It presents additional information to supplement a definition presented earlier in the text.
C
It summarizes a method that the government of Finland uses to fund education.
D
It indicates potential solutions to a problem discussed earlier in the text.