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Q.

Choose the statement as true or false.

There was a huge impact on Germany after its refusal to pay the war compensation in 1923.

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a

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b

False

answer is A.

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Detailed Solution

The above statement is true.
There was a huge impact on Germany when it refused to pay the compensation for the war in 1923 because, at that time, Germany was dealing with economic problems as it fought the war mostly on loan, and this was the time when Germany had to pay the war reparation in gold. When Germany could not compensate, France purchased Germany's industrial area at Ruhr to claim their coal as compensation for the war. This was the starting point of hyperinflation in Germany.

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