7
QuizMultiple Choice

Money

Question 7 • * HSA 26-27 Economics

What would happen if currency in all countries had fewer denominations, i.e. fewer varieties of coins or numbers of bills?

Answer
A
People would be more likely to confuse the value of currencies.
B
Exchanging money between countries would be much easier.
C
People could not charge as many different prices for goods.
D
All goods would be more expensive than they currently are.

Explanation

With fewer coin and bill denominations, people would have fewer convenient ways to pay exact amounts. Businesses would therefore be limited in the different prices they could easily charge, so C, “People could not charge as many different prices for goods,” is correct. This would not make all goods more expensive; it would mainly restrict the available payment amounts.

AI-written and checked against the verified answer.

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