Which economic weakness characterized the Articles of Confederation?

• A. Interstate commerce was strictly controlled by the federal government
• B. A centralized banking system existed
• C. Federal income tax existed
• D. No national currency existed

Answer: (D)

Not having a national currency created a fundamental economic weakness. Without a single monetary unit accepted everywhere, states issued their own money, which varied in value and caused confusion in trade and debt payments across the country. This made it hard to finance government operations or pay vendors and soldiers, highlighting why a unified monetary system was so important. The broader setup also left Congress unable to regulate interstate commerce, there was no centralized banking, and there was no federal income tax, but the immediate impact most people felt was the chaos and inefficiency of competing currencies.