In the eleventh century, why did the Chinese government choose to restrict the private production of paper money and assume it as a duty of government?

a. The Chinese government did not like paper money and hoped they could stamp it out by restricting its supply

b. The Chinese government wanted to stimulate trade by issuing more currency through checks and promissory notes

c. The Chinese government was fearful that Arab merchants would develop their own paper currency and try to use it on Chinese ports and markets

d. The Chinese government wanted to preserve the convenience of paper money, but to reduce problems caused by forgery and inadequate currency backing

Question

History

Bailee Branch

18 July, 11:07

In the eleventh century, why did the Chinese government choose to restrict the private production of paper money and assume it as a duty of government?

a. The Chinese government did not like paper money and hoped they could stamp it out by restricting its supply

b. The Chinese government wanted to stimulate trade by issuing more currency through checks and promissory notes

c. The Chinese government was fearful that Arab merchants would develop their own paper currency and try to use it on Chinese ports and markets

d. The Chinese government wanted to preserve the convenience of paper money, but to reduce problems caused by forgery and inadequate currency backing

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Answers (1)

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Isaias Arias · Answer 1

The best option from the list would be that " d. The Chinese government wanted to preserve the convenience of paper money, but to reduce problems caused by forgery and inadequate currency backing," since the government was able to exert more control over the security of the production process.