WORLD HISTORY

Detailed explanation-1: -Financing to pay for the war came mostly by borrowing from the American people through the sale of war bonds, which raised about $50 billion. Another $150 billion came from financial institutions. During the war, commercial banks alone increased their Treasuries holdings from $1 billion to $24 billion.

Detailed explanation-2: -1914-In preparation for its involvement in World War I, the U.S. Government raised money by selling “Liberty Bonds."

Detailed explanation-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.

Detailed explanation-4: -To help pay for the war, the government increased corporate and personal income taxes. The federal income tax entered the lives of many Americans. In 1939 fewer than 8 million people filed individual income tax returns. In 1945 nearly 50 million filed.