WORLD HISTORY

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: -This crisis came to be known as hyperinflation, a situation when prices rise phenomenally high. Eventually, the Americans intervened and bailed Germany out of the crisis by introducing the Dawes Plan, which reworked the terms of reparation to ease the financial burden on Germans.

Detailed explanation-3: -In the Locarno Pact of 1925, France, Belgium and Germany agreed to respect each other’s borders. In 1926, Germany was accepted into the League of Nations. The Dawes Plan, alongside a sudden injection of foreign loans, helped the German economy to stabilise and prosper.

Detailed explanation-4: -In an attempt to pay the war reparations to the Allied countries, Reichsbank, Germany’s central bank, printed too much paper currency, causing devaluation or reduction in the value of its currency. This pushed the country into a state of hyperinflation.

Detailed explanation-5: -Dawes’ plan was A plan to ease reparation terms in Germany. Hence the correct answer is option ‘B’. Note: After World War I, Dawes plan was made for the reparations of Germany. With two members each from France, Italy, Belgium, Britain, and the United States, a committee of experts presided by Charles G.

Detailed explanation-6: -The Dawes Plan was initially a great success. The currency was stabilized and inflation was brought under control. Large loans were raised in the United States and this investment resulted in a fall in unemployment. Germany was also able to meet her obligations under the Treaty of Versailles for the next five years.