After World War I, how were tax payments by German citizens to their government in German marks to be converted to dollar payments to United States lenders so that the German government could meet its obligation for reparations payments as required by the Treaty of Versailles?

Question

Quizplus · Accepted Answer

The correct answer is D because all the statements describe mechanisms through which Germany and the Allied countries could manage reparations and debt payments post-World War I. Germany needed to increase taxes or borrow to cover reparations (A), needed a current account surplus to earn foreign currency for payments (B), and the Allied countries needed surpluses with the U.S. to manage their debts (C).

After World War I, How Were Tax Payments by German