1. Government revenue should:

            A) Meet the ongoing expenses of the government

            B) Pay the interest on the national debt

            C) Gradually reduce the national debt

            D) Be enhanced with a 25% excise tax on whiskey *

2. Foreign debts should be repaid immediately.**

3. Old and new bonds should be redeemed at face or par value.

            A) Shows that U.S. debt is good

            B) Forces the upper class elite to support the government

            C) This goal is accomplished with the Funding Act of 1790

4. The federal government assumes state debts.

            A) Assumption Act - $25 million in state debts

            B) Jefferson - compromise - Southern new capital

5.Encourage industry and manufacturing.

            A) Manufacturing makes a nation wealthy

            B) End foreign dependence on essential goods

            C) Tariffs to increase revenues and protect infant industries

6. Establish a national bank: Bank of United States***

            A) Provide safe and centralized location for government deposits

            B) Provide an institution for taxes to be paid into

            C) Provide an institution where the government could borrow money

            D) The bank could lend money to new industries

            E) Serves as an agent to sell government bonds

*This excise tax leads to the Whiskey Rebellion.

**By 1796 the U.S. repaid $12 million in debts to France and

Holland.