Question

In 1912, the Taft administration sent U.S. marines to Nicaragua as part of the policy of dollar diplomacy. This policy was based on the idea that the U.S. government could


A.offer economic aid to European nations in exchange for American use of local military bases.

B.invade any European nation that threatened the economic interests of American businesspeople.

C.use its power to guarantee the profits of American businesspeople in foreign countries.

D.use its power to colonize any nation that refused to trade with Americans.

Answer 1

A 
Definitely wrong. The exact opposite was true: America wanted to successfully compete with European interests.

B
B is also incorrect. This was not a military venture (although the military were involved). This was about money.

C and D are both true in the case of Nicaragua. Nicaragua was a protectorate of the United States. America wanted to exploit her natural resources. Since there was opposition to the Americans being there (see Mena uprising) I would pick D but don't be surprised if it is C. 

D <<< answer