Question

What was the effect of Hoover’s moratorium on war-time debt and reparation payments? A. It gave Germany and other countries time to reorganize their banking system. B. The moratorium helped European nations stabilize their currencies. C. It allowed for European countries to restructure their debt and receive additional support from Asia. D. The moratorium only postponed the reality that European nations could not repay their debt.

Answer 1

Answer:

The correct answer is D. Hoover's moratorium only postponed the reality that European nations could not repay their debt.

Explanation:

The Hoover Moratorium was a proposed moratorium on World War I reparations payments proposed by President Hoover on June 20, 1931. The President's project was to ease the debt burdens of European countries, especially Germany, to facilitate that they rebuild their economies and promote trade to get out of the Great Depression. Finally, this moratorium did not work, since after the proposed year deadline, the European economies were still stuck in a huge financial crisis, so they could not cope with their payments.