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Q.

Choose whether the statement is True/False.


France owned Germany's industrial area at Ruhr.


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a

True

b

False 

answer is A.

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Detailed Solution

The above statement is true.
After World War I, when Germany could not compensate according to the Treaty of Versailles, France owned Germany's industrial area at Ruhr. France did so to claim their coal as compensation for the war. However, this step was the starting point of hyperinflation in Germany. Therefore, Germany had a huge impact when it refused to pay compensation for the war in 1923. Because at that time, Germany was dealing with economic problems as it fought the war principally on loan and had to pay the war reparation in gold.
 
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