Q. Which among the following is known as Gresham’s Law?
Answer: Bad Money (if not limited in quantity) drives out Good money out of circulation
Notes: Bad Money (if not limited in quantity) drives out Good money out of circulation – This statement was given by Sir Thomas Gresham, the Economic adviser of Queen Elizabeth. This law states that people always want to hoard Good Money and spend Bad Money when two forms of Money are in circulation at the same time.

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