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Q.

Consider the given statement as true or false:

The First World War transformed the US from an international creditor to an international debtor.

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a

True

b

False

answer is B.

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Detailed Solution

The given statement is false.
The First World War (1914-1918) made the US an international creditor. Britain borrowed liberally from US banks and the public to finance this war. After the war ended, the US recovered far quicker from the economic strain laid by the war than the rest of the European countries. The US also exported capital to the rest of the world after the war, which boosted the recovery of the European countries and augmented world trade.
The correct statement would be The First World War (1914-1918) made the US an international creditor.

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