Question

What was 'Dawes Plan'?
A. A plan to secure loans from US bankers
B. A plan to ease reparation terms on Germany
C. A plan to overtake Rhineland mines
D. An extension of the Versailles treaty
E. None of these

Answer 1

Hint:In the year 1923, Charles Dawes was the Budget director of the US, and he was sent to Europe to sort out the economy of Germany.
An arrangement between the Allies and Germany was the Dawes Scheme of 1924 (devised by a banker from the United States named Charles G. Dawes).
The underlying idea behind the initiative was to make it easier for Germany to pay for repairs.

Complete answer:
The old money of Germany was called in and burned; the German Reichsbank was reformed under the advice of Charles Dawis. Due to this, hyperinflation ended. Along with Stresemann, Dawes arranged the Dawes Plan, which helped Germany to pay reparations longer.
The most important decision of Dawes, which helped to kick start the German economy, was that he agreed to America lending 800 million gold marks to Germany.
On January 14, 1924, in Paris, the Dawes committee began its meetings and reported on 9 April. The stabilization of currency, balancing of budgets though provisional separable for examination, and it insisted for the stable currency that could be maintained only when the budget is normally balanced.
Dawes' plan was A plan to ease reparation terms in Germany.

Hence the correct answer is option ‘B’.

Note: After World War I, Dawes plan was made for the reparations of Germany.
With two members each from France, Italy, Belgium, Britain, and the United States, a committee of experts presided by Charles G. Dawes, an American financier, produced a report which was based on the questions of German reparations for the presumed liability for World War I.