Main Answer:
More money in circulation refers to an increased supply of currency within an economy. In the context of the 16th-century Commercial Revolution, it resulted from the acquisition of gold and silver.
Therefore, the correct answer is A. More money in circulation.
Step-by-step explanation:
During the 16th century in Europe, the accumulation of gold and silver during the Commercial Revolution signified more money in circulation. As European powers engaged in overseas trade and exploration, they acquired vast quantities of precious metals, primarily gold and silver, from the Americas. This influx of precious metals contributed to the expansion of the money supply in Europe. With more gold and silver in circulation, there was an increase in liquidity, facilitating economic transactions and fostering trade.
The heightened availability of currency also led to economic growth, as merchants and entrepreneurs had greater access to capital for investments and ventures. This economic prosperity, driven by the influx of precious metals, played a pivotal role in shaping the emerging capitalist system in Europe during this period. Moreover, the increased availability of money had a cascading effect on various sectors of society, leading to the development of financial institutions and systems that further fueled economic activities.
In addition to its economic implications, the increased circulation of money had broader consequences for political and military dynamics. The states with a significant influx of precious metals gained not only economic power but also enhanced military capabilities. The wealth derived from overseas trade and the accumulation of gold and silver enabled states to strengthen their armies and navies, providing a foundation for geopolitical influence and dominance.
Therefore, the correct answer is A) More money in circulation.