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Question : Which law of economics states, "Bad money drives out good money"?

Option 1: Baxter's Law

Option 2: Ohm's Law

Option 3: Gresham's Law

Option 4: Gauss's Law


Team Careers360 6th Jan, 2024
Answer (1)
Team Careers360 12th Jan, 2024

Correct Answer: Gresham's Law


Solution : The correct option is Gresham's Law.

Gresham's law is an economic principle that states that bad money drives out good money. It is a monetary principle that can be applied to the currency markets. Good money means any currency or coin whose legal tender value and the value of the commodity do not differ much. Bad money means any currency or coin whose legal tender value and the value of a commodity have a huge difference.

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