why must old currency be taken out of circulation when new currency is made?\nthe old currency is more…

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

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

Answer

Brief Explanations:

In an economic system, if both old and new currency are in circulation simultaneously, the total amount of currency in circulation will increase. According to economic theory, an excessive amount of currency in circulation relative to the goods and services available can lead to inflation. Inflation is a general increase in prices and fall in the purchasing - power of money.

Answer:

Too much currency in an economic system will cause inflation.