2
QuizMultiple Choice

Washington’s Presidency

Question 2 • U.S. History I 2014 - SS3308 A-IC

Which statement was true of the US economy in 1790?

Answer
A
The US was paying back its loans.
B
The US only had money printed by the federal government.
C
The US easily borrowed large sums of money.
D
The US had trouble borrowing money to pay its debts.

Explanation

After the Revolutionary War, the United States owed large debts and had a weak financial reputation. In 1790, it struggled to borrow money to meet its obligations, which is why Alexander Hamilton proposed a plan to address the debt and strengthen the nation’s credit. So the true statement is that the US had trouble borrowing money to pay its debts.

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