Hamilton's Financial Plan Quiz

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What was one of Hamilton's main goals for his financial plan?

Increase international trade
Establish good credit (correct)
Expand the territory
Create a federal army

Which element was NOT part of Hamilton's financial plan?

Increased tariffs on imports
Implementing a federal income tax (correct)
Creating a national bank
Establishing a national currency

What was one significant objection raised by Madison and Jefferson regarding Hamilton's plan?

It would bankrupted the nation
It placed power in the hands of few (correct)
It would require new taxes on the poor
It encouraged foreign investment

What was a key component of the compromise reached between Hamilton and his opponents?

Moving the capital to D.C. (D) Signup and view all the answers

Which tax was included in Hamilton's financial plan to raise revenue?

Excise tax on luxury goods (B) Signup and view all the answers

What is the effect of the 25% tariff on the price of British-made cloth in the US?

It increases the price of British-made cloth to $6.00. (A) Signup and view all the answers

How does the tariff encourage consumers to buy American goods?

By raising the price of imported goods, making American goods relatively cheaper. (D) Signup and view all the answers

What role does a national bank play in the economy?

Establishes monetary policies and provides a national currency. (A) Signup and view all the answers

What happens to the surplus money that workers save?

It is deposited in banks and lends money for loans. (B) Signup and view all the answers

What is a primary goal of Hamilton regarding the national bank?

To raise revenue and support American businesses. (B) Signup and view all the answers

Which statement best represents Jefferson's view on federal laws?

States should have the power to cancel federal laws. (B) Signup and view all the answers

What was Hamilton's stance on the creation of a national bank?

A national bank is essential for managing the country's currency. (D) Signup and view all the answers

How did Jefferson view the role of states in relation to democracy?

States should experiment with democratic principles. (D) Signup and view all the answers

What is a key belief of Hamilton regarding government powers?

Government can implement necessary laws without Constitutional authorization. (B) Signup and view all the answers

What would Jefferson likely say about tariffs?

All states need to agree before any tariffs are put in place. (C) Signup and view all the answers

Which of the following aligns with Hamilton's philosophy on government efficiency?

The government needs to run effectively to achieve its goals. (C) Signup and view all the answers

What is Jefferson's view on the spending of tax dollars?

Only on items explicitly mentioned in the Constitution. (C) Signup and view all the answers

What does Hamilton believe is important about the elastic clause of the Constitution?

It allows for flexibility to enact necessary laws. (B) Signup and view all the answers

What was one reason Congress hesitated to assume state debts?

Only Southern states had paid their debts. (C) Signup and view all the answers

What compromise was made regarding the location of the new capital?

It was moved to Virginia. (D) Signup and view all the answers

What clause did Hamilton cite to argue for the constitutionality of the National Bank?

Necessary and Proper Clause. (A) Signup and view all the answers

Which amendment did Jefferson and Madison reference to argue against the National Bank?

Tenth Amendment. (A) Signup and view all the answers

What was Washington's initial stance on the constitutionality of the National Bank?

He was unsure about it. (B) Signup and view all the answers

What prompted Washington to ultimately support the establishment of the National Bank?

His conviction about its constitutionality after investigation. (A) Signup and view all the answers

How did Hamilton view the interpretation of the Constitution regarding the National Bank?

He believed in a loose interpretation. (A) Signup and view all the answers

Why did Jefferson and Madison oppose Hamilton's financial plans?

They thought it undermined state powers. (C) Signup and view all the answers

What was the main goal of Hamilton's financial plan?

To transform the US economy from bartering to capitalism (A) Signup and view all the answers

What was the first part of Hamilton's financial plan focused on?

Assuming the debts of the states (B) Signup and view all the answers

What was a key function of the proposed National Bank?

To hold and manage government funds (A) Signup and view all the answers

How did Hamilton intend to raise revenue for the government?

Implementing an excise tax and protective tariffs (A) Signup and view all the answers

Why were farmers opposed to some of Hamilton's proposed taxes?

They made and sold whiskey, which was taxed (D) Signup and view all the answers

What kind of monetary system did Hamilton's plan propose?

A common currency backed by gold and silver (B) Signup and view all the answers

What did Hamilton believe the repayment of state debts would accomplish?

Make the US a reliable investment for foreign nations (A) Signup and view all the answers

Which item was NOT included in Hamilton's revenue-raising strategies?

Income tax on wages (B) Signup and view all the answers

What led to the Whiskey Rebellion in Pennsylvania from 1791 to 1794?

Farmers were unhappy with the taxes on whiskey. (D) Signup and view all the answers

What actions were taken by farmers during the Whiskey Rebellion?

They attacked tax collectors and government buildings. (C) Signup and view all the answers

How did President Washington respond to the Whiskey Rebellion?

He led a military force into Pennsylvania. (B) Signup and view all the answers

What was the significance of the Whiskey Rebellion in relation to federal authority?

It demonstrated the federal government's ability to quell dissent. (A) Signup and view all the answers

What was one consequence of the armed rebellion against the Whiskey Tax?

Fear of violence leading to farmers hiding. (A) Signup and view all the answers

What is an excise tax primarily imposed on?

Specific goods, often luxury items (D) Signup and view all the answers

Why did farmers prefer to distill their grain into whiskey?

Whiskey had a longer shelf life than grain (B) Signup and view all the answers

What may have contributed to farmers' strong dislike of the liquor tax?

It was seen as an attack on their traditional practices (B) Signup and view all the answers

How did Washington respond to the Whiskey Rebellion?

By sending federal troops to quell the unrest (C) Signup and view all the answers

What does the response to the Whiskey Rebellion suggest about the power of the new federal government?

It was ready to use military force to maintain order (A) Signup and view all the answers

What was the primary cause of Shay's Rebellion?

Inability to pay taxes and debts (C) Signup and view all the answers

What major action did President George Washington take during the Whiskey Rebellion?

He sent troops to suppress the rebellion (B) Signup and view all the answers

What did Fries's Rebellion reveal about the national government's authority?

It could impose and enforce laws despite opposition (C) Signup and view all the answers

Which event highlighted the need for a stronger national government?

Shay's Rebellion (D) Signup and view all the answers

What was the federal government's motive for taxing whiskey production?

To pay off war debts (A) Signup and view all the answers

Which issue did the Articles of Confederation struggle with that contributed to early rebellions?

Collecting taxes efficiently (B) Signup and view all the answers

What was a primary effect of the new U.S. Constitution adopted in 1787?

It made collecting taxes easier for the government (B) Signup and view all the answers

Which group was primarily affected by the whiskey tax imposed by the federal government?

Farmers relying on whiskey production (B) Signup and view all the answers

What led to the government's response to the Whiskey Rebellion?

Tax collectors being threatened (A) Signup and view all the answers

How did the response to Shay's Rebellion differ from the response to the Whiskey Rebellion?

The state gave in during Shay's Rebellion, while the government shut down the Whiskey Rebellion (A) Signup and view all the answers

Which economic strategy did Alexander Hamilton employ that led to the Whiskey Rebellion?

Imposing an excise tax on distilled liquors (B) Signup and view all the answers

What was one major consequence of the government's actions during the Whiskey Rebellion?

Demonstrated the government's ability to enforce laws (A) Signup and view all the answers

What was a common factor between the farmers involved in both Shay’s Rebellion and the Whiskey Rebellion?

They were affected by economic hardships due to taxation (A) Signup and view all the answers

Strict Constructionist

Belief that the government should only have the powers explicitly listed in the Constitution.

Loose Constructionist

Belief that the government can take actions not specifically mentioned in the Constitution if they are necessary for the country's well-being.