What is Gresham’s Law

(A) Good money is hoarded
(B) Good money is melted
(C) Good money is exported
(D) Good money is hoarded melted and exported

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Correct Answer : Good money is hoarded
Question Asked : OPSC OCS Pre. Exam 2018
Explanation : Gresham’s law is a monetary principle stating that “bad money drives out good.” Gresham’s law comes into operation when a new coin (bad money) is assigned the same face value as a superior older coin (good money).In such case, the new coin will be used in circulation while the old coin will be hoarded and thus disappear from circulation.
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Web Title : what is greshams law
Tags : Economics
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