The law stating that bad money drives out good is named after which person?

The law stating that bad money drives out good is named after which person?

• A. Thomas Robert Malthus
• B. Karl Marx
• C. Sir Thomas Gresham
• D. Adam Smith

Answer: (C)

Gresham's Law describes the idea that when two forms of money circulate with the same face value but different intrinsic values, the "bad" money will drive out the "good" money from everyday use. This happens because people want to hoard the money with higher intrinsic value (the more valuable metal) and spend the money with lower intrinsic value. The law is named after Sir Thomas Gresham, a 16th-century English financier who noted this pattern while advising on coinage under Elizabeth I. So, the person associated with this principle is Sir Thomas Gresham.

Gresham's Law describes the idea that when two forms of money circulate with the same face value but different intrinsic values, the "bad" money will drive out the "good" money from everyday use. This happens because people want to hoard the money with higher intrinsic value (the more valuable metal) and spend the money with lower intrinsic value. The law is named after Sir Thomas Gresham, a 16th-century English financier who noted this pattern while advising on coinage under Elizabeth I. So, the person associated with this principle is Sir Thomas Gresham.