What did the Currency Act of 1764 prohibit in the colonies?

• A. Banning colonial paper money
• B. Requiring colonies to issue more paper money
• C. Abolishing all currency in colonies
• D. Allowing colonial paper money with restrictions

Answer: (A)

The question tests how the British government controlled colonial money and what could count as payment. The Currency Act of 1764 banned the colonies from issuing or using paper money as legal tender, requiring that debts be paid in gold or silver (specie) instead. This stopped colonial legislatures from expanding their own currency and effectively prevented paper money from being used to settle public or private debts. It didn’t abolish all currency or mandate more paper money, and it didn’t permit paper money with restrictions. So the action described is banning colonial paper money.