The London Board of Trade limited the quantity of pound sterling banknotes permitted in circulation in the American colonies, citing fear of devaluation induced by overprinting. The Board also denied the necessity of paper money, considering the ever-increasing colonial exports purchased by foreign nations that rendered payments in gold and silver. However, in 1749, Governor Glen of South Carolina contended that access to more paper currency was essential because there was actually a deficit of gold and silver. This shortfall led to difficulties in exchanging goods for these precious metals, forcing many merchants to earn their success only through continued reliance on the barter system. Such a system limited the colonists' ability to obtain certain goods for which they had no apparently comparable trade, severely hampering widespread economic growth in the colonies.

Select the sentence that suggests the final phrase, severely hampering widespread economic growth in the colonies, maybe an exaggeration.





Which of the following statements, if true, would most strengthen Governor Glen’s argument in favor of paper currency?

A. It was difficult for the colonists to maintain high levels of foreign exports during the winter months.
B. Although colonists were not always able to find trade partners in their local communities, there were strong domestic trade links among the various colonies.
C. Since the value of a pound sterling banknote was linked directly to that of silver, the two methods of payment were equally acceptable to a merchant.
D. Foreign countries often wanted to barter with colonial exporters, but the value of some foreign goods was difficult to determine.
E. Because some colonies had already developed their own form of legal tender and no longer used the British pound sterling, the Board of Trade should not have been worried about devaluation.