Which of the Following Is True of the Johnson Act

question 143

Multiple Choice

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.

---

Definitions:

Construction Loan

Short-term financing used to cover the cost of building or renovating a property until long-term financing can be secured.

Expense Account

A ledger account that represents all costs or expenses incurred by a company during a specific period, impacting the income statement's net income.

Acquisition Costs

Expenses associated with acquiring new assets or investments, including legal fees, consulting fees, administrative costs, and other related expenses.

Property, Plant, Equipment

Long-term tangible assets owned by a business for use in the production or supply of goods and services, also known as fixed assets.