World War I: Military and Diplomacy

AP US History· difficulty 3/5

U.S. Trade with Allies vs. Central Powers ($M) 1914 1916 1917 Allies Central

Which factor in U.S. entry into WWI does this trade pattern most directly support?

  • A

    Trade with Germany expanded throughout the war.

  • B

    British naval blockade and U.S. economic ties to the Allies created strong incentives to support Britain and France.

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  • C

    American banks refused all wartime loans.

  • D

    U.S. trade with both sides was balanced and equal.

Explanation

By 1916, U.S. trade with the Allies dwarfed trade with the Central Powers, which the British blockade had cut off. American banks (notably J.P. Morgan) lent over $2 billion to the Allies, deepening the U.S. stake in their victory.

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