Why did the USA introduce the Dawes plan?

To devalue German currency

No worries! We‘ve got your back. Try BYJU‘S free classes today!

To reorganise the Reichsbank

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

To print German currency

No worries! We‘ve got your back. Try BYJU‘S free classes today!

To invest in Germany

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B To reorganise the Reichsbank
In an attempt to pay the war reparations to the Allied countries, Reichsbank, Germany’s central bank, printed too much paper currency, causing devaluation or reduction in the value of its currency. This pushed the country into a state of hyperinflation. So, the United States of America intervened and introduced the Dawes Plan - to reorganise the Reichsbank and rework the terms of reparation.

Suggest Corrections