Balance of Payments Problem

Question 1

When did the balance of payments problem first emerge?

Answer 1

Summer 1934

Question 2

Why did the balance of problems occur?

Answer 2

Increase in raw material imports

Failure to increase exports

Question 3

What was the name of the Economic Minister in early 1934?

Answer 3

Schmitt

Question 4

What was Schmitt’s intention with unemployment?

Answer 4

To decrease it through expanding industries like textiles

Question 5

Why was Schmitt’s plan not possible?

Answer 5

The army was demanding more resources for rearmament

Question 6

Who replaced Schmitt?

Answer 6

Schacht

Question 7

When did Schacht introduce the New Plan?

Answer 7

July 1934

Question 8

How was Schacht able to introduce the New Plan?

Answer 8

Was given dictatorial powers over the economy

Question 9

What conditions did the New Plan have on purchasing raw materials from abroad?

Answer 9

Could only be bought using Reichsmarks

Question 10

What was a MEFO Bill?

Answer 10

A guarantee by the government for payment

Question 11

How long could a Mefo bill be held? at what interest rate?

Answer 11

5 years at 4% interest per year

Question 12

What was Schacht credited for doing in 1923?

Answer 12

Setting up the Rentenmark