Question

The Credit Moblier scandal involved over charging construction costs of building steel production factories to taxpayers and manipulating the share prices of Crédit Mobilier of America for the benefit of its stockholders and graft to politicians.

A. True
B. False

Answer 1

The correct answer is B, as the statement is false. This scandal involved several politicians using their political power to obtain personal benefits in their businesses.

Step-by-step explanation:

The Credit Mobilier of America scandal was a political scandal that began in the early 1870s. The scandal involved a construction company called Credit Mobilier of America, which did construction work for the state-subsidized Union Pacific Railroad. Several congressmen were shareholders in Credit Mobilier of America, which raised suspicions that the participating congressmen had used their position in Congress to undermine the regulatory oversight of the company. Although several congressmen were involved in the scandal, only two congressmen were eventually found guilty of the case.