A Level History - America - Practice Exam

What was the Credit Mobilier Scandal?

1. A scandal involving fraud with railroad construction funds

2. A program to finance Confederate debts after the Civil War

3. A social initiative to aid black soldiers

4. A partnership between government and whiskey producers

The correct answer is: A scandal involving fraud with railroad construction funds

The Credit Mobilier Scandal was indeed tied to fraudulent activities involving railroad construction funds, making the selected answer correct. It took place in the United States during the late 1860s and involved the Credit Mobilier of America, a construction company created by the Union Pacific Railroad. The company was involved in corrupt practices where it overcharged the government for construction costs and then distributed profits among politicians to secure favorable treatment and contracts. This scandal highlighted issues of corruption and graft in the federal government during the post-Civil War Reconstruction era, as various government officials were implicated in accepting bribes or kickbacks. The implications of this scandal were significant, leading to public outrage and a decline in trust towards the government and business practices. The other options refer to distinctly different historical events or initiatives. For instance, the financing of Confederate debts pertains to efforts after the Civil War that do not relate to railroad construction or fraud. Similarly, aiding black soldiers represents social efforts rather than financial misconduct. The partnership with whiskey producers does not connect to the themes of fraud and corruption synonymous with the Credit Mobilier Scandal.