Multiple choice

Gresham's law is related to

  1. Consumption and demand

  2. Supply and demand

  3. Circulation of money

  4. Deficit financing

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Gresham's Law states that 'bad money drives out good' - when two forms of money with the same face value but different intrinsic values circulate together, people hoard the valuable money and spend the debased money. This is about circulation dynamics, not consumption or supply-demand.