Question

Question

What was the immediate cause of hyperinflation in Germany during the early 1920s?(1 point)
Responses

the loss of economic aid from Western democracies after Germany occupied the demilitarized Rhineland
the loss of economic aid from Western democracies after Germany occupied the demilitarized Rhineland

excessive printing of worthless paper money needed to cover workers’ salaries
excessive printing of worthless paper money needed to cover workers’ salaries

the failure of the German banking system after Austria’s largest bank collapsed
the failure of the German banking system after Austria’s largest bank collapsed

the demand for immediate repayment of reparation loans made by U.S. investors and bankers

Answer 1

The immediate cause of hyperinflation in Germany during the early 1920s was excessive printing of worthless paper money needed to cover workers’ salaries. This was largely a result of the economic difficulties Germany faced after World War I, including the burden of reparations imposed by the Treaty of Versailles.