AP World History : Labor Systems and Economic Systems 600 CE to 1450

Study concepts, example questions & explanations for AP World History

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Example Questions

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Example Question #21 : Labor Systems And Economic Systems

Which of these countries was the first to issue paper money?

Possible Answers:

Britain

Germany

India

China

The Netherlands

Correct answer:

China

Explanation:

Throughout the history of civilization, the value and supply of money had generally been tied to the supply of precious metals - typically gold and silver. The Chinese government switched to paper money during the ninth century. The switch to paper money allows governments more flexibility with currency manipulation and countries that operate with paper money are more resistant to fluctuations in the market.

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