WORLD WAR II 1941 1945
THE START OF THE SECOND WORLD WAR
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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World wide depression made worse by Versailles Treaty which forced Germany to pay war damage reparations.
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Too much military spending.
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Too much government spending.
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None of the above
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Detailed explanation-1: -This provision effectively prevented many German industries from selling their goods in foreign markets. In order to pay its debts for World War I, as dictated by the Versailles Treaty, Germany engaged in a tremendous hyperinflation of its currency, printing paper marks until, by 1923, they became utterly worthless.
Detailed explanation-2: -Germany had suspended the gold standard and financed the war by borrowing. Reparations further strained the economic system, and the Weimar Republic printed money as the mark’s value tumbled. Hyperinflation soon rocked Germany. By November 1923, 42 billion marks were worth the equivalent of one American cent.
Detailed explanation-3: -The Treaty of Versailles caused furious reactions in Germany. Germany had to pay huge sums of money to the countries it had fought in compensation for the damage. In addition, France, England, and the United States wanted to prevent Germany from becoming strong enough to start a new war.
Detailed explanation-4: -Aside from affecting Germany, the Treaty of Versailles might have caused the Great Depression. Many people, even at the time, agreed with the British economist John Maynard Keynes that Germany could not possibly pay so much in reparations without severe risks to the entire European economy.