601.4 Lesson - thiersLaw

Screen: thiersLaw

Headline: Thier's Law

Reward: 3

Text: Thier's Law is a concept that discusses what might happen if people and businesses refused to accept or use a lower quality form of currency.

Instead of disappearing from circulation, the higher quality form of money might be traded at a premium, or for a higher value than its face value.

Thier's Law suggests that if a government tries to force people to use a lower quality currency by making it legal tender, it will be ignored.

In other words, people and businesses may choose not to accept the lower quality currency and instead prefer to use the higher quality one or other forms of payment.

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QUIZ

Question: What is Thier's Law?

Answer: A law that discusses what might happen if people and businesses refuse to accept or use a lower quality form of currency

Feedback: Correct! Good job, you understood Thier's Law. This law discusses what might happen if people and businesses refuse to accept a lower quality form of currency. Interesting fact: Thier's Law suggests that if a government tries to force people to use a lower quality currency by making it legal tender, it will be ignored

Correct: true

Answer: A law that says people will always choose the more valuable currency when given a choice

Feedback: Wrong answer! Gresham's Law explains this behavior, not Thier's Law

Correct: false

Answer: A law that says people will always choose the less valuable currency when given a choice

Feedback: Sorry, try again! Thier's Law is not about always choosing the less valuable currency.

Correct: false