Question

Under the Articles of Confederation, why was the national government unable to raise revenue? Check all that apply.

The national government was not given the power to regulate trade.
The national government needed approval from the states to collect taxes.
The states voted to allow the national bank to go bankrupt.
The state and national currencies competed with each other.
The national government could not create national money.

Answer 1

Correct choices: 1, 2, 4, and 5.

- The national government was not given the power to regulate trade — Congress under the Articles lacked authority over interstate and foreign commerce, which limited revenue sources such as tariffs.
- The national government needed approval from the states to collect taxes — Congress could only request funds from states; it could not levy taxes directly on individuals.
- The state and national currencies competed with each other — multiple currencies and unstable paper money undermined revenue collection and credit.
- The national government could not create national money — it lacked effective, exclusive control over currency (states issued their own money), so no stable national monetary system existed.

(The third statement is false: there was no state vote to let a national bank go bankrupt.)