Question

In which of the following ways was the Royal Treasury of France depleted?

• A. The French Royal Family had outrageously spent money on maintaining a grand palace and extravagant lifestyle.
• B. The Royal Family had already used most of the money on developing the army, the court, the university and government offices.
• C. The Royal Family had spent a lot of money on waging wars against the British.
• D. The Royal Family used their jewellery as collateral to borrow money from Lender and use it to support the American wars against the British.

Answer 1

Answer: (A), (C)

The correct options are
A The French Royal Family had outrageously spent money on maintaining a grand palace and extravagant lifestyle.
C The Royal Family had spent a lot of money on waging wars against the British.

The Royal Family of France had depleted its treasury by leading extravagant lives, waging wars and supporting Americans against the British in the American War of Independence. They did not have money to spend on regular expenses like maintaining the army, the court, the university and government offices. They borrowed money from Lenders and ended up incurring three billion dollars in debt.