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Why was the Continental dollar a problem for soldiers and merchants after the American Revolution?

1.It had become worthless.
2.It was too big for pockets.
3.The ink was too pale to read.
4.The paper fell apart easily.

1 Answer

4 votes

Answer:

It had become worthless

Step-by-step explanation:

War efforts for the American revolution against Britain cost a lot of money. To raise the necessary budget, American government produced Continental dollar.

Continental dollar was some sort of promissory notes that were produced by the American government. If the people purchase the continental dollar, the government promise that the value will increase after the war is over.

But since the notes were not backed by an actual physical assets, not many people actually want to use it for transaction. So, gradually the value of continental dollar keep decreasing until they eventually become worthless.

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