Which act prohibited colonial governments from issuing paper money?

Which act prohibited colonial governments from issuing paper money?

• A. The Stamp Act
• B. The Currency Act
• C. The Tea Act
• D. The Quartering Act

Answer: (B)

Controlling currency in the colonies shows up in how they tried to fund themselves and pay debts. The Currency Act was designed to curb that practice and stabilize trade with Britain. It forbade colonial governments from issuing paper money and required that payments and debts be settled with coins or with currency approved by Parliament. This limited the colonies’ ability to manage their own finances and protected the value of British currency and merchants’ interests. Other acts address different issues: one taxed printed materials, another regulated tea, and another required housing for soldiers. So the act that prohibited issuing paper money is the Currency Act.

Controlling currency in the colonies shows up in how they tried to fund themselves and pay debts. The Currency Act was designed to curb that practice and stabilize trade with Britain. It forbade colonial governments from issuing paper money and required that payments and debts be settled with coins or with currency approved by Parliament. This limited the colonies’ ability to manage their own finances and protected the value of British currency and merchants’ interests. Other acts address different issues: one taxed printed materials, another regulated tea, and another required housing for soldiers. So the act that prohibited issuing paper money is the Currency Act.