AMERICAN IMPERIALISM 1890 1919
TREATY OF VERSAILLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Countries were too afraid of being humiliated by other countries.
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Some countries did not care about being condemned.
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There were no other real consequences other than being condemned.
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The leaders of the League had no morals themselves.
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Detailed explanation-1: -Moral Suasion refers to a type of influencing procedure which is applied by Central Banks to keep the pressure on commercial banks in order to abide by the monetary policies that are established. It is carried out by transferring speeches, seminars and meetings.
Detailed explanation-2: -Moral Suasion Example A famous example of the use of moral suasion is the New York Federal Reserve’s intervention in the bailout of Long-Term Capital Management (LTCM) in 1998. LTCM was a highly successful hedge fund, generating a string of high-double-digit annual returns in the 1990s.
Detailed explanation-3: -Moral suasion is a qualitative method of credit control, being used by the central bank. Under this method, the Central Bank merely uses its moral influence on the commercial banks. It includes the advice, suggestion request and persuasion with the commercial banks to co-operate with the Central Bank.