Explain gresham’s law, Financial Management

Explain Gresham’s Law.

Answer:  Gresham’s law considers to the phenomenon that bad (abundant) money drives good (scarce) money out of circulation. This type of phenomenon was frequently observed under the bimetallic standard within which both gold and silver were employed as means of payments, with the exchange rate among the two metals fixed.

Posted Date: 5/8/2013 5:31:57 AM | Location : United States

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