Solution:After Germany refused to pay in 1923, France occupied Germany's leading industrial area named Ruhr. In 1923, Germany refused to pay back the loans. The gold reserves of Germany were depleting at an alarming rate, as the war reparation was to be paid in gold. Moreover, the resources were scarce owing to the harsh outcomes of the Treaty of Versailles. In 1923, France, in response to Germany's refusal to pay, occupied Germany's industrial land Ruhr to claim its coal. Ruhr was a leading industrial area in Germany. However, the retaliation by Germany was passive, and they started printing paper currency recklessly, which severely affected the German economy as the value of the German Mark fell.