Question

Which is an effect of the war reparations inflicted on Germany by the Treaty of Versailles?

German standard of living improved.

German currency became inflated and worthless.

International trade increased.

Relations between France and Germany improved.

Answer 1

The Treaty's required reparations amplified the state of Europe's economy in Germany, causing hyperinflation. The French insisted on the Treaty being harsh out of fear of Germany instigating another war.

Step-by-step explanation:

Answer 2

German currency became inflated and worthless!

Step-by-step explanation:

"Germany's economy, in particular, was in desperate condition due to the heavy burden of war reparations required by the Treaty of Versailles. Under the weight of these payments, the German economy collapsed in 1923. The German government (The Weimar Republic) attempted to pay the war reparations by printing money, thus inflating their own currency. Therefore, the Deutschmark, or mark, became worthless."