What happened to currency printed by Congress and state governments in the 1770s and 1780s?
A) It became the standard for business in America and England until the middle of the nineteenth century.
B) It lost its value because of a lack of confidence that it would be redeemed in specie.
C) Money collectors hoarded currency in case England regained control.
D) It was recalled at face value by the United States when the new government switched to dollars.

Question

Quizplus · Accepted Answer

The currency printed by Congress and state governments in the 1770s and 1780s lost its value because people lacked confidence that it would be redeemed in specie (gold or silver coins). This led to hyperinflation and made it difficult for people to conduct business.

What Happened to Currency Printed by Congress and State Governments