2006-08-22 12:23:52 · 7 answers · asked by Anonymous in Entertainment & Music ➔ Polls & Surveys
It would be fine if they all were accepted equally and everyone knew the values. The only purpose of currency and coins is to facilitate trade. If there are just a few types of money then this is facilitated easily. The more types, the longer it can take to transact business, the more of a drag on the economy it is. Also, if they AREN'T accepted equally, then it is a much bigger drag on the economy, as you must have people who will exchange different types of money, and these people need to extract a profit on each transaction. This is the main reason most of Europe instituted the Euro, to facilitate trade amongst themselves and to foster business growth.
By the way, this is the current argument against keeping the penny, in that it takes a lot of time to make change for people, and businesses would be better off just to round to the nearest nickel. That, and the fact that it costs much more than one cent to make a penny now.
2006-08-23 05:54:22 · answer #1 · answered by medoraman 3 · 0⤊ 0⤋
That was the situation in the early days of the USA. The Continental Congress had very limited power. Banks would issue notes, and those bank notes were the currency of the day. Without a strong central government that had the ability to control the currency in use on the streets, the value of money fluctuated. States were always in competition with one another leading to a disaster that is known as economic balkanization. In replacing the articles of the continental congress with the constitution that we have today, the federal government was given the power to control the currency and commerce among the states. The rest is, as they say, history.
2006-08-22 21:38:18 · answer #2 · answered by ? 5 · 0⤊ 0⤋
It would cause problems if the coins were not worth the same
2006-08-23 17:46:25 · answer #3 · answered by dishwasher67 6 · 0⤊ 0⤋
Same as a country with too many dialects. You can use Deutsch marks in Holland but you can't use Dutch guilders in Germany. Like that.
2006-08-22 19:26:20 · answer #4 · answered by vanamont7 7 · 1⤊ 0⤋
Their would be too much confusion on what value each coin was.
2006-08-22 19:48:12 · answer #5 · answered by Judas Rabbi 7 · 0⤊ 0⤋
they would not be accepted as legal money
2006-08-22 19:25:49 · answer #6 · answered by pinkstealth 6 · 1⤊ 0⤋
my purse would need wheels
2006-08-22 19:28:27 · answer #7 · answered by janine h 3 · 1⤊ 0⤋