Which of the following is true of the Johnson Act, as passed by Congress in 1934?
A) The act forbade the government from extending loans to foreign governments that were in default on debts owed to the United States.
B) By the terms of the act, the United States returned to the gold standard.
C) The act declared a moratorium on war debts owed to the United States.
D) Through the act, American banks were permitted to open foreign branch banks.

Question

Quizplus · Accepted Answer

The Johnson Act, passed by Congress in 1934, forbade the government from extending loans to foreign governments that were in default on debts owed to the United States. It was aimed at ensuring that American taxpayers' money was not used to provide assistance to countries that were not able to repay their loans.

Which of the Following Is True of the Johnson Act