A Level History - America - Practice Exam

What action did Nicaraguan leader Zelaya take that led to U.S. intervention in 1909?

1. Cuts economic privileges to mining companies

2. Increased taxes on U.S. businesses

3. Formed an alliance with Germany

4. Nationalized all foreign investments

The correct answer is: Cuts economic privileges to mining companies

The correct answer highlights a key moment in the history of U.S. intervention in Central America. Nicaraguan leader José Santos Zelaya took significant actions that threatened U.S. interests in the region, particularly regarding American mining companies. By cutting economic privileges to these companies, Zelaya not only angered U.S. businesses but also signaled a shift in the country's policies that could potentially lead to broader nationalization of foreign assets. This move was perceived as hostile by the United States, which had a vested interest in maintaining favorable conditions for American enterprises abroad. The reaction from the U.S., including the eventual intervention, was influenced by a desire to protect those economic interests and maintain stability in the region. This intervention marked a continuation of the United States' policy of intervention in Latin America, stemming from its broader strategy aimed at preventing foreign influence and ensuring that regional governments remained favorable to American economic and political goals.