Question

How was the creation of money handled under the Articles of Confederation?

In the confederate system, each state created its own money.
The federal government alone created money.
Each state and the national government created money.
The Articles of Confederation did not mention creating or managing money.

Answer 1

Each state and the national government created money.

Under the Confederation both the Continental/Confederation Congress and the individual states issued currency (especially paper "bills of credit"), which produced inflation and confusion. The Constitution later fixed this by giving Congress the sole power to coin money and regulate its value.