Can individual states coin their own money?

• A. Yes
• B. No
• C. Only with federal permission
• D. Only in emergencies

Answer: (B)

The ability to coin money is a power kept for the federal government to keep the nation’s currency uniform. The Constitution specifically gives Congress the authority “to coin Money, regulate the Value thereof,” which means minting coins and setting their value. Because this power is vested in the national government, individual states don’t have the authority to produce their own money, even in emergencies or with some form of federal permission one might imagine. The money used across the United States is the federal currency, and it has legal tender status, which reinforces the idea that money comes from the national government. Historically, some early or colonial units issued their own money, but after the Constitution, the federal government took over this responsibility to maintain a single, consistent system.