Question

5 how was the new currency different from continentals? a it was specific to each state b it had financial backing c it wasn’t accepted by farmers and merchants

Explanation:

Continental currency (used during the American Revolution) was fiat money with no financial backing, leading to hyperinflation. The new U.S. currency that replaced it was backed by financial assets (like gold/silver or government securities), giving it actual value. Option A is incorrect because the new currency was federal, not state-specific. Option C is incorrect because the backed new currency was widely accepted by economic actors like farmers and merchants, unlike worthless continentals.

Answer:

B. It had financial backing