The Biggest Drain on Spain's Financial Resources During the Sixteenth

question 82

Multiple Choice

The biggest drain on Spain's financial resources during the sixteenth century was the cost of

• A)paying for the government's huge bureaucracy.
• B)supporting the wars of the Habsburgs.
• C)supporting the colonies in the New World.
• D)defending the treasure fleets against pirates.
• E)the Inquisition.

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Definitions:

Effective Rate of Return

The actual annual interest earned or paid on an investment or loan, considering the effect of compounding.

RRSP

Registered Retirement Savings Plan, a Canadian financial retirement savings tool for individuals to hold investment assets and savings tax-deferred until withdrawal.

Contributions

Payments or services provided to a common fund or collection.

Semi-annually Compounded

A method of calculating interest where the interest is added to the principal amount twice a year, leading to growth at an exponential rate.