The Currency Act of 1764:
A) prohibited the colonies from making their currency legal tender
B) created terrible inflation in the colonies
C) was designed to ease the shortage of hard money in the colonies
D) said that lenders had to accept paper money in payment of debts
E) changed the name of the basic monetary unit to "dollar" from "pound"

Question

Quizplus · Accepted Answer

The Currency Act of 1764 prohibited the colonies from making their currency legal tender, meaning that it could not be used to pay off debts or taxes. This forced the colonists to use hard currency (such as British pounds), which they often didn't have enough of, leading to economic struggles.