Under the Articles, what problem arose due to states coining their own money?

Under the Articles, what problem arose due to states coining their own money?

• A. The federal government gained too much control
• B. There was a uniform currency
• C. It caused economic chaos due to lack of a single currency
• D. Taxes were evenly distributed

Answer: (C)

Under the Articles of Confederation, there was no national currency because states could mint their own money. This meant multiple currencies circulating at once, each with its own value. Trade between states became messy and costly because you had to figure out how much money from one state was worth in another, prices shifted, and debt payments or taxes across borders were unpredictable. Without a single, standardized currency, economic activity slowed and confusion spread, so the situation described is economic chaos caused by not having a unified money system.

Under the Articles of Confederation, there was no national currency because states could mint their own money. This meant multiple currencies circulating at once, each with its own value. Trade between states became messy and costly because you had to figure out how much money from one state was worth in another, prices shifted, and debt payments or taxes across borders were unpredictable. Without a single, standardized currency, economic activity slowed and confusion spread, so the situation described is economic chaos caused by not having a unified money system.