USA HISTORY

Aside from taxes, ____ was responsible for most of the war funding ____

(A) Rationing Coupons

(B) International Donations

(C) Government Savings

(D) ** War Bonds

Concept note-1: -What Is a War Bond? A war bond is a debt security issued by a government to finance military operations during times of war or conflict. Because war bonds offered a rate of return below the market rate, investment was achieved by making emotional appeals to patriotic citizens to lend the government money.

Concept note-2: -War Bonds: War Bonds are issued by any government to raise funds in cases of war.

Concept note-3: -War Bonds for the War Effort To help fund this effort, the government turned to ordinary Americans. The United States Treasury offered Americans a series of War Bonds they could purchase during the war. A War Bond was both an investment in one’s country and an investment in one’s own financial future.

Concept note-4: -President Roosevelt settled on two major means of raising money: increased taxes and borrowing, through the sale of massive amounts of war bonds. Besides paying for the enormous costs of war, these measures would remove excess wages and other spendable money in a time of shortages, helping to keep a lid on inflation.