A Level History - America - Practice Exam

What scandal were James Fisk and Jay Gould associated with?

1. The Whiskey Ring

2. The Credit Mobilier Scandal

3. Black Friday

4. The Southern Black Codes

The correct answer is: Black Friday

James Fisk and Jay Gould were primarily associated with "Black Friday," which occurred on September 24, 1869. This financial scandal revolved around their attempt to manipulate the gold market. They conspired to corner the gold market, which involved buying up large quantities of gold in an effort to drive prices higher and sell for profit. Their plan led to a dramatic increase in gold prices, which in turn instigated panic among investors. When the U.S. government intervened by selling gold from its reserves to stabilize the market, the prices plummeted. This sudden drop caused significant financial ruin for many investors, and the fallout of the scandal damaged numerous businesses and led to widespread distrust in the financial system. The scandal highlighted the risks of speculation and the potential for manipulation in financial markets during the Gilded Age. The other options discussed prominent historical events but were unrelated to Fisk and Gould. The Whiskey Ring involved a scheme to defraud the government of tax revenue on whiskey during the 1870s. The Credit Mobilier Scandal revolved around a construction company that overcharged for the building of the Union Pacific Railroad, involving high-level politicians in corruption. The Southern Black Codes were laws passed in the South aimed at restricting the