To which of the following does Gresham's Law apply?

Question

Quizplus · Accepted Answer

Gresham's Law applies to all of the above. The law states that "bad money drives out good," meaning that if two forms of currency are in circulation, people will hoard the one that holds more value and use the less valuable one. This can apply to any situation where there are multiple forms of a commodity or currency in circulation, such as in the used car market or capital markets, as well as counterfeit money being introduced into a system.

To Which of the Following Does Gresham's Law Apply