Gresham's Law suggests that people tend to hold on to the best money and trade away inferior money.

Question

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Gresham's Law states that when two currencies compete against each other, the currency that is of higher value will be hoarded while the currency that is of lower value will be used in transactions or traded away. This is because people see the higher value currency as a better store of value, and therefore will not want to part with it.

Gresham's Law Suggests That People Tend to Hold on to the Best