How did the Currency Act affect the colonies?

Passed by Parliament on September 1, 1764, the act extended the restrictions of the Currency Act of 1751 to all 13 of the American British colonies. It eased the earlier Currency Act’s prohibition against printing of new paper bills, but it did prevent the colonies from repaying future debts with paper bills.Click to see full answer. Also asked, what was the cause and effect of the Currency Act?The Currency Acts of 1751 and 1764 were one of the causes of the Revolutionary War. The Acts were an attempt by Parliament to limit the colonies’ ability to create their own currency. It was both an attempt to solve possible inflation and control the colonies.Likewise, how did the intolerable acts affect the colonists? Intolerable Acts. The Intolerable Acts were punitive laws passed by the British Parliament in 1774 after the Boston Tea Party. The laws were meant to punish the Massachusetts colonists for their defiance in the Tea Party protest in reaction to changes in taxation by the British to the detriment of colonial goods. Similarly one may ask, why was the currency act bad? The system was good for merchants in the mother country, but bad for the colonies, because it resulted in more money leaving the colonies than coming in. Some colonies relieved their currency problems by issuing paper money backed by anticipated tax collections or land mortgages.What was the reaction to the currency act?The Acts sought to protect British merchants and creditors from being paid in depreciated colonial currency. The policy created tension between the colonies and Great Britain and was cited as a grievance by colonists early in the American Revolution.