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The Monetary System of Bimetallism Is Unstable

Question 18

Multiple Choice

The monetary system of bimetallism is unstable. Due to the fluctuation of the commercial value of the metals,


A) the metal with a commercial value lower than the currency value tends to be used as metal and is withdrawn from circulation as money (Gresham's Law) .
B) the metal with a commercial value higher than the currency value tends to be used as money (Gresham's Law) .
C) the metal with a commercial value higher than the currency value tends to be used as metal and is withdrawn from circulation as money (Gresham's Law) .
D) none of the above

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