Question

Which statement best describes the rationale behind giving large amounts of financial aid to areas like Europe and later Latin America? A) The United States felt if Europe was financially stable then communism would be less likely to spread. B) The United States wanted Europe to be in debt to them so they could better control the countries politically. C) The United States feared that if Europe did not recover financially quickly then World War III might break out. D) The United States feared that if Europe could not pay back its’ war debts to the Soviet Union then they would be occupied by the Soviets.

Answer 1

Answer: A) The United States felt if Europe was financially stable then communism would be less likely to spread.

Explanation: One of the major goal of the United States in giving financial aids to Europe and Latin America was to assist in rebuilding the war-torn regions, remove trade barriers, modernize industry, improve European prosperity, and prevent the spread of Communism. This was known as the European Recovery Plan in 1948 which was to send foreign aid to Western Europe. During this period, the United States transferred over $12 billion dollars in economic recovery programs to Western European economies after the end of World War II.