What was the impact of the gold and silver discovered by the Spanish and Portuguese in the Americas?

A. Spain took over the rest of Europe.

B. The Americas became the wealthiest region of the world.

C. The large amount of gold and silver discovered by the Spanish and Portuguese in the Americas devalued the worth of the world supply of both metals.

Question

Natasha Palmer

Business

9 September, 22:52

What was the impact of the gold and silver discovered by the Spanish and Portuguese in the Americas?

A. Spain took over the rest of Europe.

B. The Americas became the wealthiest region of the world.

C. The large amount of gold and silver discovered by the Spanish and Portuguese in the Americas devalued the worth of the world supply of both metals.

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Answers (1)

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Gaven Oneal · Answer 1

C. The large amount of gold and silver discovered by the Spanish and Portuguese in the Americas devalued the worth of the world supply of both metals.

Explanation:

Gold and silver was considered as a valuable metal because it is extremely hard to obtain. The resources are rare and the process of obtaining it is dangerous, This is why people across the word put gold silver in a high value.

According to law and demand, a price of a certain goods will fall as the supply increase. This also happen to gold and silver. After the Spanish and Portuguese discovered new sources of gold and silver, the supply of that resource increased in the market. Since this resource become less scarce, the value of this resource fall down.