EMERGENCE OF USA
THE AMERICAN REVOLUTIONARY WAR AND ITS IMPACT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Rise
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Fall
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Stay the same
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Do cartwheels
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Detailed explanation-1: -WHAT HAPPENED AFTER CONGRESS AND THE STATES PRINTED HUNDREDS OF MILLION OF DOLLARS WORTH OF PAPER MONEY TO PAY FOR THE WAR? THE BILLS QUICKLY LOST THEIR VALUE BECAUSE THE AMOUNT OF BILLS IN CIRCULATION GREW FASTER THAN THE SUPPLY OF GOLD AND SILVER BACKING THEM.
Detailed explanation-2: -Continentals refers to paper currency issued by the Continental Congress in 1775 to help fund the American Revolutionary War. Continentals quickly lost value, partly because they were not backed by a physical asset like gold or silver, but also due to the fact that too many bills were printed.
Detailed explanation-3: -What was the economic result of the Continental Congress’s decision to issue paper money? Money became devalued.