What,according to Mercantilist Thinkers,was the Purpose of Colonies

question 32

Multiple Choice

What,according to mercantilist thinkers,was the purpose of colonies?

• A) To encourage international cooperation through free trade
• B) To enrich the states that had founded them
• C) To allow merchants to profit by diversifying their economic investments
• D) To act as laboratories in which new methods of state administration could be tested

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Definitions:

Rate of Interest

The percentage charged on a loan or paid on savings over a period of time, indicating the cost of borrowing or the gain on savings.

Invested

Refers to funds that have been allocated into assets or projects with the expectation of earning a return.

Worth

The total value of all financial and non-financial assets owned by an individual or business minus any liabilities.

One-time Investment

An investment made in a lump sum, as opposed to investing in smaller, incremental amounts over time.