A) Wagner's law
B) Grimm's law
C) Gresham's law
D) Keynes' law
Correct Answer: C
Solution :
Gresham's law states that "bad money drives out good". It holds that if two kinds of money in circulation have the same denominational value but different intrinsic values, the money with higher intrinsic value will be hoarded and eventually driven out of circulation by the money with lesser intrinsic value. For example, if there are two forms of commodity money in circulation with similar face value, the more valuable commodity will disappear from circulation.
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