Question

Which statement BEST describes how Spain was affected by its discovery of silver and gold in the "New World?

Answer 1

Answer: 'Spain failed to use the profit to become the dominant European economic power.'

Explanation: Despite Spain being able to fetch most wealth from the colonies back to the country, they failed at making use of the wealth to grow their domestic economy. Rather, Spain used this wealth to trade with other countries like India and China in exchange for spices, condiments, fabric, etc. Spain also spent huge sums on increasing its military might and waging wars in order to conquer new lands. Great Britain and France flourished as powerful European economies in the contemporary period.