Question

The governments of the Republic of Texas (1836-1846) met most of their public expenses by—


A) selling public lands to soldiers who had served in the Texas Revolution


B) printing excessive amounts of paper money


C) entering into free trade agreements with the United States and Mexico


D) borrowing large sums of money from the United States

Answer 1

Answer:

B.

Explanation:

After the Republic of Texas achieved its independence, the country was in huge debt and suffered financial stress.

The Republic of Texas issued its first paper notes in 1837 which authorized them an issue of $500,000 of promissory notes.

With the issuance of promissory notes, the Republic of Texas met most of their public expenses. Therefore, the correct answer is option B.