Practice Quiz

CLEP US History II

Category - WWI

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What was the United States’ financial motive for entering World War I?
  1. Germany was a formidable manufacturing competitor of the United States, and America hoped that defeating them would hinder their industries and economy after the war.
  2. Germany controlled fossil fuel reserves to which the United States hoped to gain access if they defeated the German Empire.
  3. European nations were spending far less money in the U.S. marketplace so that they could fund war efforts instead.
  4. The Allied powers had taken out loans with the United States, and if they lost to Germany, the debts would not have been repaid.
  5. German U-boats were impeding American commerce, sending the United States to the brink of recession.
Explanation
Answer: D - Allied forces took out sizable loans from the United States to fund their war efforts; if an indebted nation lost to Germany, the United States would not have been able to recoup the losing party’s debt. Not only did several countries borrow money from the United States, they used a substantial portion of the funds to buy American goods for their war efforts. Allied spending in the United States in 1914 totaled $825 million. But, after two years of war, their spending increased exponentially to $3.6 billion.
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