Question

What was one problem related to allowing banks to issue money? A) Banks were not issuing enough money and this was decreasing the demand for American goods. B) Banks were all issuing the same notes. C) Many banks were issing more money than they had gold and silver to back.

Answer 1

some banks were issuing more money than they had in gold and silver. hope this helps

Answer 2

C) To Many banks were issuing more money than they had gold and silver to back.

Step-by-step explanation:

The federal government is only permitted to make coin and paper money, State banks are not permitted to print official currency or coins but they could publish "Bills of credit" in exchange for a deposit.

State bank notes can say the form of Representative money but they are not gold or silver but they represent it, the bank notes are a more convenient form of large transactions.