16
practice examMultiple Choice

Practice Exam

Question 16 • US History Studies Since 1877

President Taft’s use of Dollar Diplomacy in Nicaragua and China showed that American foreign policy:

Answer
A
needed to offer enough money to support each country’s military.
B
should not encourage American businesses to invest in foreign projects.
C
could not focus only on business and economics.
D
should concentrate on using American money in all business deals.

Explanation

Dollar Diplomacy sought to advance U.S. influence through American loans and business investment. In Nicaragua and China, financial interests alone did not secure U.S. goals; political instability and resistance also required attention to military and diplomatic concerns. This showed that foreign policy could not focus only on business and economics, making B the best answer.

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