Question

The United States paying off a loan for Nicaragua in exchange for control over Nicaragua’s Railroad and National Bank is an example of: A FDR’s Good Neighbor Policy B Taft's Dollar Diplomacy C Roosevelt’s Big Stick Diplomacy D Wilson’s Moral Diplomacy

Answer 1

It is an example of Taft's Dollar Diplomacy. President Taft's plan was to make Latin American economies dependent on the economy of the U.S., hence called Dollar Diplomacy, in taking Nicaragua's National Bank he would basically have bought Nicaragua's economy.

FDR's Good Neighbor Policy was a policy of non-intervention by the U.S. on Latin American disputes, Roosevelt's Big Stick sought to establish the american zone of influence upon Latin America and Wilson's Moral Diplomacy sought to reinforce U.S. relations to countries who shared the same morals and ideology.