Question

(MC)Which of the following U.S. actions characterizes the foreign policy of dollar diplomacy? financially backing the construction of the Panama Canal establishing a U.S. military presence in China refinancing Haiti’s national debt encouraging the flood of immigrants from Europe and Asia

Answer 1

Dollar diplomacy is the effort of the US to further it's aims in Latin America and South Asia. The foreign policy of dollar diplomacy can be best characterized by the United States' decision to financially back the construction of the Panama Canal. 

Answer 2

The correct answer is A) Re-financing Haiti’s national debt.

The action that characterized the foreign policy of Dollar diplomacy was the re-financing Haiti’s national debt.

Dollar diplomacy is a United States foreign policy that was an idea of President William H. Taft. He considered that in order to maintain political stability in a region where the U.S. had economic and political interests, the American Government should expand the protect and increase the trade with that region. The Dollar diplomacy policy was applied succesfully in the Caribbean and Central America. That is why is correct the affirmation that the action that characterized the foreign policy of Dollar diplomacy was the re-financing Haiti’s national debt.