1D.7.4.9 Legacy of Economic Policies

• What was one primary function of the Bank of England?

  Managing government debt
• The Bank of England's establishment transformed public finance and laid the foundation for modern banking practices in Britain.
• The Bank of England was financed by private investors with a charter from Parliament
• How did the Triennial Act indirectly stimulate economic activity?

  Enhanced accountability
• Match the economic policy with its outcome:

  Trade Expansion ↔️ Increased trade revenues

  Monetary Stabilization ↔️ Improved market confidence

  Bank of England ↔️ Funded military expenses
• Which war prompted the establishment of the Bank of England?

  Nine Years' War
• The Bank of England's charter was granted by Parliament.
• The primary purpose of the Bank of England was to raise funds for the Nine Years' War against France
• What was one significant impact of the Bank of England on Britain's economy?

  Improved public credit
• The National Debt was introduced to manage government expenses and finance the Nine Years' War.
• What was established in 1694 to raise funds for the Nine Years' War?

  Bank of England
• The National Debt was introduced to finance government expenses and improve fiscal management.
• Monetary policy under William and Mary focused on reforming the currency
• What was the outcome of establishing the Bank of England?

  Improved public credit
• The Triennial Act of 1694 required parliamentary elections every three years, enhancing accountability.
• Monetary stabilization under William and Mary reduced inflation
• Steps leading to the establishment of the Bank of England

  1️⃣ Need for funds during the Nine Years' War

  2️⃣ Private investors financed the bank

  3️⃣ Parliament granted a charter

  4️⃣ Bank manages government debt
• What was the government deficit in 1695 under William III and Mary II?

  1.7 million
• Monetary policy under William III aimed to improve the value and reliability of British currency
• What was the metal quality of the new coinage introduced under William III?

  High-quality silver
• The exchange rate stabilized at 12 shillings per ounce under William III's monetary reform.
• Factors contributing to the expansion of trade under William and Mary

  1️⃣ Increased colonial activity

  2️⃣ Implementation of mercantilist policies

  3️⃣ Emphasis on exporting finished goods
• Which region accounted for £1.5 million in trade volume for Britain in 1700?

  Americas
• The balance of trade is calculated as exports minus imports
• The economic policies of William III and Mary II laid the foundation for Britain's dominance in international trade during the 18th century.
• What were the key economic policies introduced under William III and Mary II?

  Bank of England, Triennial Act, Trade Expansion, Monetary Stabilization
• The Bank of England was founded in 1694
• What was the purpose of the Triennial Act of 1694?

  Required elections every three years
• The Trade Expansion policy under William III and Mary II aimed to promote English goods abroad.
• What was the goal of the Monetary Stabilization policy?

  Reform currency, reduce inflation
• The Trade Expansion policy increased trade revenues
• The Monetary Stabilization policy reduced inflation by reforming the currency and stabilizing the exchange rate.
• What role did the economic policies of William III and Mary II play in Britain's history?

  Established Britain as a financial hub
• The Bank of England was established in 1694
• For what war was the Bank of England primarily founded to raise funds?

  The Nine Years' War
• The Bank of England was financed by private investors with a charter from Parliament.
• What was the primary purpose of establishing the Bank of England in 1694?

  To fund the Nine Years' War
• The Bank of England managed government debt by issuing loans and providing banking services
• The Bank of England was funded by private investors with a charter from Parliament.
• What was the impact of the Bank of England on public credit and military funding?

  Significantly improved them