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CLEP Western Civ II

Category - Global Competition

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The South Sea Company, which created a widespread economic crisis with its collapse in 1720, underwrote the national debt of England in exchange for

Possession of British colonial islands in the Caribbean
Controlling interest in the Bank of England
A significant percentage of the West African slave trade
The rights to transport tea from India to the colonies
Exclusive trade with South America

Explanation

Answer: E - The South Sea Company underwrote the national debt of England in exchange for exclusive trade rights with South America. It collapsed in what is known as the South Sea Bubble after wild speculation grossly overvalued its shares. This crash resulted in a widespread economic crisis, as aristocrat and commoner alike were rendered penniless overnight.

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CLEP Western Civ II

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CLEP Western Civ II

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