The Neutrality Act of 1935

question 21

Multiple Choice

The Neutrality Act of 1935:

• A) was directed against Japanese aggression in China
• B) allowed the U.S. Navy to stop and search German ships on the high seas
• C) permitted the United States to sell arms and munitions to warring nations to ensure the United States did not have to get involved
• D) stopped German and Italian military aid to Francisco Franco
• E) forbade the sale of arms and munitions to warring nations

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Definitions:

Retaining Earnings

The practice of holding onto a company's profits to reinvest in the business rather than distributing them as dividends to shareholders.

Net Worth

The total assets minus total outside liabilities of an individual or a company.

Interest Rate

The cost of borrowing money or the return on savings, expressed as a percentage of the principal.

Annual Interest Rate

The percentage of the principal that is paid as a fee over a period of one year for borrowing or saving money.