Monetary Base as a Form of Government Debt

An economist is examining two forms of newly issued physical currency: a one-dollar coin and a ten-dollar banknote. From the perspective of financial liability, what is the fundamental distinction between these two items?

In a country's financial system, the entity directly responsible for newly minted coins is the same entity responsible for newly printed banknotes.

Shift in Currency Liability

Match each type of physical currency with the entity that holds the direct financial liability for it.