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Louis XVI and France's Financial Troubles Quiz

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Louis XVI and France's Financial Troubles Quiz

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Questions and Answers

What did Louis XVI find upon ascending the throne of France?

A surplus of financial resources

An empty treasure (correct)

A flourishing economy

A strong military

Why did the French government have to spend an increasing amount of its budget on interest payments?

To decrease the taxes on the Third Estate

To fund the maintenance of government offices

Due to lenders charging high interest rates on loans (correct)

To support the American colonies in gaining independence

Which palace was known for its extravagance during Louis XVI's reign?

Palace of Louvre

Palace of Versailles (correct)

Palace of Tuileries

Palace of Fontainebleau

What was the main reason for France's increasing debt during Louis XVI's rule?

Maintaining an extravagant court at Versailles Signup and view all the answers

Which estate in French society had to bear the burden of paying taxes in the eighteenth century?

Third Estate Signup and view all the answers

What impact did France's involvement in assisting the American colonies have on its finances?

Increased the national debt by over a billion livres Signup and view all the answers

What was the financial impact on France due to its assistance to the American colonies in gaining independence?

It added more than a billion livres to the existing debt. Signup and view all the answers

Why did lenders who previously gave credit to the French state start charging 10 percent interest on loans?

To compensate for the financial losses incurred during the war. Signup and view all the answers

What was the primary reason for France being forced to increase taxes during Louis XVI's reign?

Maintenance of an extravagant court at Versailles. Signup and view all the answers

How did France's involvement in assisting American colonies affect the state's budget in terms of interest payments?

It required a significant portion of the budget just for interest payments. Signup and view all the answers

What burden did only the members of the Third Estate have to bear in French society during the eighteenth century?

Paying the majority of taxes. Signup and view all the answers

How did maintaining an army contribute to France's financial challenges under Louis XVI?

It required a substantial portion of the state's budget. Signup and view all the answers