1D.7.4.2 Financial Reforms and Taxation

• What were the primary financial challenges faced by the English monarchy before William III and Mary II took the throne?

  Costly wars, lavish spending
• Before William III and Mary II, frequent clashes with Parliament over funds led to economic instability
• The English monarchy faced financial challenges due to wars, lavish spending, and an efficient tax system before William III and Mary II.

  False
• In what year was the Bank of England established?

  1694
• The Bank of England was founded as a joint-stock company capitalized by private investors
• The Bank of England provided financial stability to the government during wartime.
• Match the key features of the Bank of England with their descriptions:

  Debt management ↔️ Organizing government debt

  Currency issuance ↔️ Authorized to issue banknotes

  Initial charter ↔️ Guaranteed monopoly on government banking

  Stability during wartime ↔️ Reliable source of financing
• Steps in the recoinage process of 1696

  1️⃣ Withdrawal of old coins

  2️⃣ Minting new coins

  3️⃣ Replacement of old coins
• Who oversaw the minting process during the recoinage of 1696?

  Isaac Newton
• The recoinage of 1696 restored public confidence in the currency and facilitated trade.
• Match the characteristics of old and new coinage during the recoinage of 1696:

  Old Coinage ↔️ Worn, clipped, debased

  New Coinage ↔️ High silver content, standardized weight
• The national debt emerged during the reign of William III and Mary II to finance wars against France
• What was the amount of the national debt by the end of the Nine Years' War in 1697?

  $£16 million$
• Borrowing from the Bank of England helped stabilize the economy and facilitate war efforts.
• In what year was the Bank of England established?

  1694
• The Bank of England was founded as a joint-stock company capitalized by private investors
• The Bank of England provided financial stability during wartime by lending money to the government.
• Match the key feature of the Bank of England with its description:

  Debt management ↔️ Organizing and managing government debt

  Stability during wartime ↔️ Financing the government during conflicts
• What type of currency was issued by the Bank of England?

  Banknotes
• The Bank of England's charter guaranteed its monopoly on government banking
• The Bank of England's creation contributed to England's rise as a global power.
• Steps in the recoinage process of 1696:

  1️⃣ Withdrawal of old coins

  2️⃣ Minting new coins

  3️⃣ Replacement of old coins
• Who oversaw the minting process during the recoinage of 1696?

  Isaac Newton
• John Locke advocated for a return to a silver standard during the recoinage of 1696.
• Match the quality of the old and new coinage during the recoinage process:

  Old Coinage ↔️ Worn, clipped, debased

  New Coinage ↔️ High silver content, standardized weight
• During which reign did the national debt emerge in England?

  William III and Mary II
• The War of Spanish Succession increased the national debt to £50 million.
• The national debt was managed through annuities, lottery loans, and the Bank of England
• What was the purpose of the land tax introduced during the reign of William III and Mary II?

  To provide regular revenue
• The land tax was considered fairer than traditional taxes because it was based on assessed land value.
• The land tax faced criticism due to regional disparities
• Match the revenue method with its characteristic:

  Land Tax ↔️ Highly predictable income

  Traditional Taxes ↔️ Fluctuates with trade
• Enhanced financial stability reduced the monarchy's reliance on Parliament for funding.
• Which institution helped manage and reduce the national debt during the reign of William III and Mary II?

  The Bank of England
• The formula for calculating land tax revenue is Land Value multiplied by Tax Rate.
• What were the key challenges to government finances before the reforms of William III and Mary II?

  Costly wars, lavish spending
• What were the primary financial challenges faced by the English monarchy before 1689?

  Costly wars, lavish spending
• Frequent clashes with Parliament over funds led to economic instability for the English monarchy before 1689.
• Before 1689, the English monarchy faced financial challenges due to costly wars, lavish spending, and an inefficient tax system
• How would you describe the royal finances of the English monarchy before 1689?

  Strained