Economics

Question 1

WWI cost…

Answer 1

£35 billion (13 x Boer War)

Question 2

Britain returned to the gold standard following WWI

Answer 2

1925

Question 3

Britain went off the gold standard again

Answer 3

1931

Question 4

Amount India contributed to the war effort

Answer 4

£146 million

Question 5

Britain placed high taxes on Indian imports after WWI

Answer 5

Actually grew India’s domestic economy
Taxes in 1917 = 11%
Taxes in 1931 = 25%

Question 6

Colonial Development Act 1929

Answer 6

Made £1 million available to the colonies

UK gov could borrow money to develop the colonies without this being backed by the gold standard

Question 7

Sterling Area meant that…

Answer 7

Volatility in the pound would not affect trade as everyone was trading in the same currency

Question 8

Shifts in trading patterns during the inter-war period

Answer 8

1913 - 1934
Total global exports fell by 28%
Exports to Empire only fell by 15%

Question 9

Ottawa Conference

Answer 9

1932

Question 10

Campaign for ‘Empire Free Trade’

Answer 10

Imperial preference

Lord Beaverbrook’s Daily Express was heavily involved

Question 11

Who supported imperial preference?

Answer 11

Conservative Party

Majority of industries

Question 12

Conservative Party came into power in Britain which meant Empire Free Trade could be implemented

Answer 12

1931

Neville Chamberlain became Chancellor of the Exchequer

Question 13

Conservative Party came into power in Canada

Answer 13

1930

Had made support for imperial preference part of their campaign

Question 14

Agreements made at the Ottawa Conference

Answer 14

Series of bilateral trading agreements which effectively enacted a system of imperial preference
Britain introduced a 10% import tax but the colonies were exempt from it
Dominions and other colonies were allowed to continue to grow their economies with free trade outside the Empire

Question 15

Impact of the Ottawa Conference on British exports to the Empire

Answer 15

1931 - 1937

Exports rose by 7%

Question 16

Impact of the Ottawa Conference on British imports from the Empire

Answer 16

1931 - 1937

Imports rose by 13%

Question 17

U boat attacks in WWI lost the British

Answer 17

11.7 million tons of shipping

54% decrease in merchant ships

Question 18

Export trade decline following WWI

Answer 18

2/3 pre-war export trade lost

Question 19

Impact of WWII on stored wealth

Answer 19

Lost 1/4 stored wealth

Question 20

Fraction of Britain’s overseas assets were sold to pay for the war

Answer 20

1/3 overseas assets

Question 21

Lend Lease

Answer 21

Britain borrowed from USA in 1941

Question 22

John Maynard Keynes negotiated a loan with America

Answer 22

1945, £900 million to help with the end of Lend Lease

Question 23

What did the Americans demand regarding Keynes/Lend Lease

Answer 23

Free convertibility of the pound which would ‘hamper an economic recovery based on imports’

Question 24

Colonial Development and Welfare Act 1940

Answer 24

Wrote off some colonial debts

Provided colonial grants/loans of up to £5 million per year

Question 25

Colonial Development and Welfare Act 1945

Answer 25

Increased aid available to the colonies to £120 million over the next ten years
Colonies had to provide a ten-year development plan regarding their use of the funds

Question 26

Import Duties Act

Answer 26

1932

British imposed a 10% tariff on most imports

Question 27

Example of bulk British purchasing

Answer 27

1939, bought the entire cocoa crop of British West Africa

Question 28

British debt in 1945

Answer 28

£3,500 million