[Answer] Why must old currency be taken out of circulation when new currency is made?

Answer: Too much currency in an economic system will cause inflation

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Why must old currency be taken out of circulation when new currency is made? Mon Jun 24 2019 14:30:00 GMT-0400 (Eastern Daylight Time) · An Old currency is any money that was previously used or regarded as a legal tender by a country. Over the years different countries have changed what used to be their legal tender while some still make use of their old currency. The reason why most countries change their currency is that it has lost its value in the international market. Using such currency will require a very high circulation of … Wed Mar 25 2020 14:30:00 GMT-0400 (Eastern Daylight Time) · Why must old currency be taken out of circulation when a new currency is made ? A) The old currency is more valuable than the new currency . B) The new currency is much more liquid than the old currency . C) Too much currency in an economic system will cause inflation. D) Too much currency in an economic system will create artificial wealth. Thu Mar 15 2018 14:30:00 GMT-0400 (Eastern Daylight Time) · Explanation: Inflation might be caused if there is more money that the economy in equilibrium is capable of deal with. If the FED creates new money automatically they will announce that the old one will start being illegal meaning it will be worthless and they will be just colorful papers. In this case the money supply will be th...

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