41
practice examMultiple Choice

Practice Exam

Question 41 • US History

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

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

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.

AI-written and checked against the verified answer.

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