WORLD HISTORY

Detailed explanation-1: -Gustav Stresemann introduced a new currency, the Rentenmark, in 1923 but in limited quantities. It was backed by a mortgage on the entire industrial and agricultural resources of the country.

Detailed explanation-2: -The Rentenmark (German: [ˈʁɛntn̩maʁk] ( listen); RM) was a currency issued on 15 October 1923 to stop the hyperinflation of 1922 and 1923 in Weimar Germany, after the previously used “paper” Mark had become almost worthless. It was subdivided into 100 Rentenpfennig and was replaced in 1924 by the Reichsmark.

Detailed explanation-3: -At the beginning of World War I, the official currency of Germany was the “Papiermark.” One mark equaled 100 pfennig. After the war, the name of the currency changed to “Rentenmark” (1923), “Reichsmark” (1924), “Deutsche Mark” (1948), and the “Euro” in 2002. Pfennig coins were in use until Germany adopted the Euro.

Detailed explanation-4: -When the Reichsbank renamed the Rentenmark to the Reichsmark, the issuing of a new currency marked the end of hyperinflation.

Detailed explanation-5: -In 1923, at the most fevered moment of the German hyperinflation, the exchange rate between the dollar and the Mark was one trillion Marks to one dollar, and a wheelbarrow full of money would not even buy a newspaper. Most Germans were taken by surprise by the financial tornado.