Why are modern coins not made of precious metals?
What will be an ideal response?
If a quarter, for example, were made of platinum instead of a more common metal, its value would be more than the 25 cents it is officially posted to be worth. People would then have the incentive to accumulate quarters and melt them down and sell them as platinum for a profit, instead of using them as money. Quarters would then disappear from circulation. This is the reason why coins are not made from precious metals.
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