What resulted from the loss in value of the Continental dollar?
(1 point)
Responses
Foreign countries demanded repayment of their war loans from the government.
Foreign countries demanded repayment of their war loans from the government.
Trade became complicated because states printed their own currencies.
Trade became complicated because states printed their own currencies.
Congress began to sell sections of land in the Northwest Territory.
Congress began to sell sections of land in the Northwest Territory.
Expeditions were sent to the West in search of gold and silver to back the new paper money.
Trade became complicated because states printed their own currencies.
Trade became complicated because states printed their own currencies.
To determine the answer to this question, we need to understand the context of the Continental dollar and its loss in value. The Continental dollar was the currency issued by the Continental Congress during the American Revolution. However, due to factors such as overprinting, lack of confidence in its value, and significant inflation, the Continental dollar began to lose its value.
Now, let's examine the given responses and determine which one aligns with the resulting consequences of the loss in value of the Continental dollar:
1. "Foreign countries demanded repayment of their war loans from the government."
This response suggests that foreign countries demanded repayment of their loans due to the loss in value of the Continental dollar. While it is true that the devaluation of the currency could have affected the ability to repay loans, there is no clear evidence to support this specific outcome. Additionally, the question is specifically focused on the consequences of the loss in value of the Continental dollar, rather than the issue of loan repayment.
2. "Trade became complicated because states printed their own currencies."
This response suggests that trade complications arose as a result of states printing their own currencies. This answer aligns with the consequences of the loss in value of the Continental dollar. With each state issuing its own currency, trade would have become complicated and potentially unstable, as the value of each state's currency may have differed significantly.
3. "Congress began to sell sections of land in the Northwest Territory."
This response suggests that Congress started selling land in the Northwest Territory as a result of the loss in value of the Continental dollar. However, there is no apparent connection between the devaluation of the currency and the decision to sell sections of land in the Northwest Territory. This option does not seem to be directly linked to the loss in value of the Continental dollar.
4. "Expeditions were sent to the West in search of gold and silver to back the new paper money."
This response suggests that expeditions were sent to acquire precious metals to support the new paper money after the loss in value of the Continental dollar. However, the question focuses on the consequences resulting from the loss in value of the currency rather than the measures taken afterward.
Based on the explanations above, the most appropriate answer is "Trade became complicated because states printed their own currencies."