Which answer best explains how the Articles of Confederation established governmental roles in regards to a system of currency?
Both Congress and the states could print and borrow money.
The states printed their own money. There was no national money.
Congress could print national money. The states had to use this money.
Congress could print national money. The states had to borrow this money. I believe the answer is A. ?
Correct. A is right.
Actually, the correct answer is C: "Congress could print national money. The states had to use this money."
To determine the answer, it is essential to understand the provisions of the Articles of Confederation. Under this early governing document, Congress was granted the power to coin money and regulate its value. As a result, Congress could print and distribute national currency.
However, the Articles of Confederation did not explicitly prohibit the states from printing their own money. Consequently, some states did print their own currency, leading to a situation where both national and state currencies were in circulation simultaneously. Nonetheless, the national currency printed by Congress held priority over the state currencies.
Furthermore, it is important to note that the Articles of Confederation did not grant Congress the power to borrow money. Instead, Congress relied on the states to provide funds voluntarily, which often led to financial challenges.
Therefore, the correct answer is C: "Congress could print national money. The states had to use this money."