hyperinflation in germany 1923 1

Question 1

by 1923, germany couldn’t meet one of the goals of the TOV, which one

Answer 1

couldn’t pay reparations

Question 2

what did france and belgium do in response to germany not being able to pay reparations

Answer 2

occupied the ruhr to take germanys resources instead

Question 3

what was the ruhr

Answer 3

richest, industrial part of germany

Question 4

what was the effect of the invasion of the ruhr and how did germany try solve it

Answer 4

german industry was destroyed, and so germany tried to print more money but it led to hyperinflation

Question 5

when was the invasion of the ruhr

Answer 5

1923

Question 6

who were the hardest hit from hyperinflation

Answer 6

middle class

Question 7

upper class had the _____ time

Answer 7

easiest

Question 8

working class had the ____ time

Answer 8

hardest

Question 9

why did working class suffer

Answer 9

they had no assets and nothing to sell ( only savings which were rendered worthless immediately)

Question 10

why didn’t upper class suffer

Answer 10

they had non cash assets like land and property, land and bussinesses which wouldn’t be rendered worthless

Question 11

consequences of hyperinflation

Answer 11

germany’s currency became worthless so nobody wanted to trade with them and shortages of food and goods got worse

bank savings became worthless

Question 12

why was germany bankrupt at this point

Answer 12

• spent all their money on ww1
• due to the TOV- all money earned went to allied countries
• no more gold reserves

Question 13

ruhr contained how much of germanys reserves

Answer 13

80%

Question 14

why did the french occupy the ruhr

Answer 14

as a form of punishment

Question 15

how did the germans react to the invasion of the ruhr

Answer 15

the workers went on paid strike as the german government didn’t want any violence but it didn’t work very well

Question 16

effect of invasion of ruhr on working germans

Answer 16

huge unemployment

Question 17

did anyone benefit from the hyperinflation

Answer 17

foreign visitors which could buy very cheap holidays and huge amounts of thigns as they had foreign money

Question 18

effects of hyperinflation (5)

Answer 18

theft increased
workers were paid twice a day to keep up with the amount of money
people carried money in wheelbarrows
shop owners would refuse money and trade instead
money was used as fuel for fire instead to keep you warm

Question 19

3 plans to help

Answer 19

currency reform
dawes plan
young plan

Question 20

how was hyperinflation solved

Answer 20

currency reform

Question 21

what was the currency reform

Answer 21

when germany introduced a new currency called the Rentenmark, and they controlled the amount of money they printed. It replaced the worthless papermarks

Question 22

did the currency reform help get the french troops out of the ruhr

Answer 22

it made the dawes plan possible but it wasn’t in itself the result of the success of the french leaving

• only a factor not a permanent solution

Question 23

did the currency reform resolve the problem of unnaffordable reparation payments and why

Answer 23

not by. itself, it only meant that the new of the new marks was higher but without economic development it wouldn’t solve the problem

Question 24

did the currency reform solve hyperinflation crisis

Answer 24

yes as money wasn’t worthless anymore

Question 25

did the currency reform resolve the problem of the need fro a permanent solution , why

Answer 25

no because even though it raised the value of the money they still needed to improve their economy otherwise nothing would change

Question 26

did the currency reform have any weaknesses

Answer 26

no it was a good plan/move

Question 27

when was the currency reform

Answer 27

1923-24