Question

Which was a financial challenge and solution during the American Revolution?

O Counterfeit money was being used in the states, so the Continental Congress only accepted payments in gold and silver.
O The federal government was unable to tax the states, so private citizens made personal loans to the Congress.
O Each state was printing its own currency, so the Continental Congress issued one single American currency.
O Printing excess currency led to inflation, so businesses were forced to use the barter system to exchange goods.

Answer 1

During the American Revolution, financial challenges included counterfeit money, inability to tax the states, and multiple currencies. Solutions included accepting payments in gold and silver, obtaining loans from private citizens, and issuing a single American currency.

Step-by-step explanation:

One financial challenge during the American Revolution was counterfeiting of money. To combat this, the Continental Congress only accepted payments in gold and silver, as they were considered more secure forms of currency.

Another financial challenge was the inability of the federal government to tax the states. As a solution, private citizens made personal loans to the Congress to provide funding for the war effort.

In addition, each state was printing its own currency, leading to confusion and devaluation. To address this, the Continental Congress issued one single American currency to create uniformity and stability.

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