THE ROARING 20S 1920 1929
AMERICAN ECONOMY IN THE 1920S
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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creating a circular flow of funds by loaning Germany money
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encouraging the repayment of loans by creating a strict timetable
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opening international trade between the U.S. and European nations
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reducing German debts abroad through buying government bonds
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Detailed explanation-1: -Under the Dawes Plan, Germany’s annual reparation payments would be reduced, increasing over time as its economy improved; the full amount to be paid, however, was left undetermined. Economic policy making in Berlin would be reorganized under foreign supervision and a new currency, the Reichsmark, adopted.
Detailed explanation-2: -The plan provided for an end to the Franco-Belgian occupation of the Ruhr, and a staggered payment plan for Germany’s payment of war reparations. Because the Plan resolved a serious international crisis, Dawes shared the Nobel Peace Prize in 1925 for his work.
Detailed explanation-3: -In 1924, the Dawes Plan reduced Germany’s war debt and forced it to adopt a new currency. Reparations continued to be paid through a strange round robin: The U.S. lent Germany money to pay reparations, and the countries that collected reparations payment used that money to pay off United States debts.
Detailed explanation-4: -Dawes Plan, arrangement for Germany’s payment of reparations after World War I. On the initiative of the British and U.S. governments, a committee of experts (with two members each from France, Belgium, Italy, Britain, and the United States), presided over by an American financier, Charles G.