Question

Why did some Central American nations object to Taft’s paying off their debt to Europe with U.S. dollars?

because American currency wasn’t worth as much as local currencies
because they felt it gave the United States too much leverage
because they were forced to give land grants to the United States in return
because they wanted Asian countries to pay off their debts instead

Answer 1

Because they felt it gave the United States too much leverage

Step-by-step explanation:

Dollar Diplomacy was a foreign policy adopted by William Howard Taft, this policy aimed to use the threat of American economic clout to coerce countries into agreements that benefited the US. At that time, several Central American nations owned to various countries of Europe, because of that, Taft paid these debts with US Dollars, which made these countries become in debt with the United States, many nations resisted the agreement, but the US was so powerful that the president forced the agreement by using the military to support some revolts into the countries.