why must old currency be taken out of circulation when new currency is made? the old currency is more valuable than the new currency. the new currency is much more liquid than the old currency. too much currency in an economic system will cause inflation. too much currency in an economic system will create artificial wealth.

Manufacturing and currency trading is a government monopoly.

Economic theory explains that the government needs to control its monetary base so that the economic environment is preserved. A ruler can not simply make more money and inject into the economy because it will cause inflation.

That is, the inflationary process is directly associated with the amount of money in circulation in the economy. By replacing the new velar currencies, the government is only doing a counterpart transaction, without affecting the monetary base, ie the amount of currency in circulation and held by the banks.

So the third alternative is correct.

explanation:

it was dumb and stupid town

question 1:

senate and house of representatives

i would try to answer the second question but i’m not 100% positive but i hope i