Which of the following is true of the Johnson Act, passed by Congress in 1934?
A) The act forbade the government from extending loans to foreign governments that were in default on debts owed to the United States.
B) By the act, the United States returned to the gold standard.
C) The act declared a moratorium on war debts owed to the United States.
D) Through the act, American banks were permitted to open foreign branch banks.

Question

Quizplus · Accepted Answer

The Johnson Act forbade the government from extending loans to foreign governments that were in default on debts owed to the United States. It was designed to help protect American interests and prevent countries from defaulting on their debts.

Which of the Following Is True of the Johnson Act