Answer:
Six months certificate of deposit
Explanation:
The interest rates of certificate of deposit are locked rates because they provide a clear and predictable return on any deposit over a specific period and the financial institution cannot later change the interest rate to reduce earnings.
One thing you have to be clear about is which war. I'm taking it to be WWI.
There was a cash crunch after WWI. France was not any kind of a problem with the United States. It's not B.
I better get to the point. It has to do with the fact that the United States couldn't sell an abundance of manufactured goods. A has to do with that, but it wasn't exactly a decline in the manufacturing industry. It was that she couldn't sell what she had in inventory.
Inflation didn't become a problem in a post WWI environment. In fact, the problem was deflation and unemployment in the 30s, but that is a decade away from this question.
This is one of those questions that a guess is as good as an answer. Britain didn't import which is the same thing as a trade imbalance. I would pick E but I think that D is very possible. They are both worded the wrong way.There was a drop off in American Exports. And Farm prices cratered. Does that mean that Americans were buying more British goods. It is not D if America couldn't sell anything to Britain.
That makes E true. I'd pick E, but there's lots of reasons to pick almost anything else except B.
