Question

What was the link between the political situations in Iran and Nicaragua during the mid-1980s?
US hostages taken by Nicaragua were set free after Iran funded their release.
The US government sent money to both countries to support radical regimes.
Profits from the arms sold to Iran were used to fund the Contras in Nicaragua.
Both countries fought the USSR with weapons supplied by the United States.

Answer 1

Profits from the arms sold to Iran were used to fund the Contras in Nicaragua.

This was the Iran–Contra affair (mid‑1980s): senior Reagan administration officials secretly sold arms to Iran and diverted the proceeds to support the Contra rebels in Nicaragua, circumventing the Boland Amendment.