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Question : Which law states that bad money drives good money out of circulation?

Option 1: Wagner's law

Option 2: Grimm's law

Option 3: Gresham's law

Option 4: Keynes' law


Team Careers360 23rd Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Gresham's law


Solution : The correct option is Gresham's law.

Gresham's law states that money of lower quality will eventually replace the higher value. It's a principle commonly invoked to explain situations involving two types of value circulating concurrently, one possessing greater intrinsic worth (good money) and the other of lesser value .

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