What Financial Problem Did the Confederation Government Face After the War

question 33

Multiple Choice

What financial problem did the confederation government face after the war?

• A) The lack of power to issue currency
• B) The fact that each state had its own currency
• C) Wage fixation that had occurred early in the war
• D) Huge war debts it could not afford to pay

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Definitions:

Interest Rate

The percentage of an amount of money which is charged for its use per a certain period, often annually, by a lender to a borrower.

Medium of Exchange

A medium of exchange is anything widely accepted as a form of payment, making trade easier by eliminating the need for a coincidence of wants.

Store of Value

An asset, commodity, or currency that can be saved, retrieved, and exchanged in the future without significantly losing value.

Holding Wealth

The act of owning, managing, and retaining assets or capital with the goal of increasing financial security and potential for future income.