Answer to Question #187694 in Economics for Alex

Question

Article IX of the Articles of Confederation states, "The United States in Congress assembled shall also have the sole and exclusive right and power of regulating the alloy and value of coin struck by their own authority, or by that of the respective States. While Congress had the right to regulate all forms of American currency, the Articles failed to call for a singular form of currency. This meant that the national government could print money, but each state could print money as well. Consequently, America had no uniform system of currency, which made trade between the states and with foreign entities much more difficult and less efficient.

Select the statement that best illustrates the major economic weakness of the Articles of Confederation.

A. the sole and exclusive right and power of regulating the alloy and value of coin struck

B. Congress had the right to regulate all forms of American currency,

C. the national government could print money,

D. America had no uniform system of currency,

Answer 1

The major economic weakness of the Articles of Confederation is that America had no uniform system of currency, which made trade between the states and with foreign entities much more difficult and less efficient.

So, the correct answer is D.