Question

How was the monetary system dealt with under the Articles of Confederation?

Answer 1

c. Each state and the national government controlled its own monetary system.

Each state and the National government controlled its own monetary system because the Articles of Confederation authorized Congress to mint and issue currency of its own. At the same time, Article of Confederation did not prevent nor discourage the States from issuing their own currencies.

Some States put tight controls on their currency while other States issued large amounts of paper money to pay their obligations, which led to the variation in the value of currency from one State to another. As an advantage, many States also charged duties on imports from other States.

Answer 2

The correct answer is letter C. The monetary system under the Articles of Confederation was dealt by c. Each state and the national government controlled its own monetary system. The Articles of Confederation gave the individual state the power to control their own monetary system.