The correct option is A. The former Confederate states were required to repay their war debts.
When the Confederacy was defeated, all of the Confederate Government's debts—contracted for military and non-military purposes alike—were canceled.
How did the Confederates pay for the war?
Three methods were used by the Confederacy to raise money during the Civil War. The first choice was to impose taxes on Southerners. The second approach was the sale of bonds. The final option, printing money, had unfavorable effects.
The Confederate dollar did not have any underlying support and was not linked to any other physical item, such as gold. The money was actually a promissory note of credit, which promised the bearer payment six months after the war's end.
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