What resulted from the loss in value of the Continental dollar? (1 point)

Answer 1

The loss in value of the Continental dollar led to significant economic instability and inflation during the American Revolutionary War. This devaluation resulted in a lack of public confidence in the currency, making it difficult for the Continental Congress to fund military efforts and operate effectively. The devaluation also prompted many to refuse to accept it as payment, leading to increased reliance on foreign currencies and barter systems. Ultimately, the collapse of the Continental dollar contributed to the need for a stable currency system in the newly formed United States, paving the way for the establishment of the U.S. dollar and central banking systems.