How the Silver Trade Began

What was a significant characteristic of the Silver Trade in the 16th century?

• A local trade network within Europe.

• A global trading system connecting various continents.

• Primarily focused on the exchange of spices.

• Limited to trade between China and Japan.

What was a major problem with paper money in China during the 12th century?

• It was too difficult to print.

• It was easily counterfeited.

• Its value became worthless over time due to inflation.

• It was not accepted by other countries.

What was a key aspect of the Ming Dynasty's second tax reform in the 1570s?

• All taxes had to be paid in grain.

• Taxes were simplified but remained in paper money.

• All taxes had to be paid in silver.

• The government stopped collecting taxes.

What was the primary purpose of establishing the city of Potosí in Bolivia?

• To serve as a new capital for the Spanish colonies.

• To facilitate the mining and processing of silver.

• To establish a major trading hub for spices.

• To create a new agricultural center.

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What was the primary sea route for silver from Potosí to Asia, after it was initially transported to Spain?

• Directly across the Pacific Ocean.

• Across the Atlantic Ocean, around Africa, and then across the Indian Ocean.

• Through the Mediterranean Sea and then overland via the Silk Road.

• From Potosí directly to Mughal India via the Indian Ocean.

Which city became Spain's central trading hub in Asia after its founding in 1571?

• Seville

• Potosí

• Manila

• Mughal India

How did the Spanish Mita System fundamentally differ from the original Incan Mita System?

• The Incan system was a form of forced labor for mining, while the Spanish system was a voluntary labor tax.

• The Spanish system was a system of slavery, whereas the Incan system was a labor tax that provided public services.

• Both systems were identical in their implementation and benefits for the workers.

• The Spanish system provided more benefits and protection to its workers than the Incan system.

What was a major economic consequence for Spain in the early 17th century, despite its vast silver wealth?

• A period of sustained economic growth and global dominance.

• Economic collapse due to the costs of multiple wars, poor leadership, and inflation.

• The establishment of a stable and equitable economic system.

• A significant reduction in its national debt.