Question

During World War I, the government raised money for the war effort by selling liberty bonds. The general’s claim that he has "one rather promising prospect" for tomorrow’s hunt is an example of:

A. Cutting expenses.

B. Using surplus funds.

C. Overseeing banks.

Answer 1

The U.S. government raised money during WWI by selling liberty bonds, totaling $23 billion, which also helped galvanize public support. In the American Civil War, the North primarily financed its war effort by selling war bonds, while the South mainly printed money.

Step-by-step explanation:

During World War I, the United States needed to secure funding for the war effort which was a costly endeavor exceeding $32 billion by 1920. To finance the war, the government sold liberty bonds to the American public through the Liberty Loan Act, raising an impressive $23 billion. These bonds not only helped provide necessary financial support for the war but also served as a means of securing public support and ensuring the investment of the American people in the war effort. Additionally, the revenue from these bonds promised security for the post-war economy, enabling families to purchase goods and maintain production activities.

In the context of the American Civil War, the North financed its war effort primarily through the selling of war bonds (a), rather than implementing an income tax, securing foreign loans, or printing money. It is important to note that the South, alternatively, relied heavily on printing money (c) to support its war efforts.