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Anestetic [448]
2 years ago
8

What was not a problem with using commodity money in the us colonies prior to 1700?

Social Studies
1 answer:
vredina [299]2 years ago
3 0

Problem with using commodity money in the us colonies prior to 1700 Very few people were willing to accept commodities as payment.

British creditors feared charge in a currency of such fluctuating cost and to alleviate their fears the colonies have been prohibited from printing more paper cash. This brought about the cost of current paper money to plummet. This jolted a colonial economic system already suffering a surge in populace and could not be contained.

Colonial people complained that gold and silver coins were chronically scarce. those coins could be received simplest thru importation. Given unrestricted change in specie, marketplace arbitrage must have eliminated continual shortage.

Commodity cash is money whose fee comes from a commodity of which it's miles made. Commodity cash includes gadgets having cost or use in themselves as well as their value in shopping for items.

Learn more about commodity money here:- brainly.com/question/24199263

#SPJ4

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