-As shown in this graphic, what conclusion can be made about the World War I reparation payment system in the 1920s?
A) The entire reparation system was financed by American capital.
B) Germany was able to make regular reparation payments to the Allies with its own funds.
C) The United States remained an isolationist nation during the 1920s.
D) The Allies failed to repay their war debts to the United States.

Question

-As shown in this graphic, what conclusion can be made about the World War I reparation payment system in the 1920s?
A) The entire reparation system was financed by American capital. 
B) Germany was able to make regular reparation payments to the Allies with its own funds. 
C) The United States remained an isolationist nation during the 1920s. 
D) The Allies failed to repay their war debts to the United States.

Quizplus · Accepted Answer

The reparation system during the 1920s heavily relied on American loans and capital to function. American banks lent money to Germany, which then used these funds to pay reparations to the Allies. The Allies, in turn, used this money to repay their war debts to the United States. This cycle indicates that American capital was a crucial element in the functioning of the World War I reparation payment system.

-As Shown in This Graphic, What Conclusion Can Be Made