Answer:

During the First World War, Britain borrowed large sums of money from various countries to fund its war efforts. One of the countries from which Britain borrowed a significant amount of money was the United States of America.

Reasons for borrowing from the United States:
1. Economic power: The United States was emerging as a global economic power during this period. It had a strong industrial base and a stable financial system, making it an attractive source of loans for Britain.

2. Neutral position: Initially, the United States adopted a neutral stance in the war. This allowed them to lend money to both the Allied powers and the Central powers. However, as the war progressed, the US became more inclined towards the Allies, including Britain.

3. Increased trade with Britain: The war created a surge in demand for goods and materials, and Britain, being a major participant in the conflict, needed to import a significant amount of supplies. The United States became a major supplier of these goods, and to facilitate trade, it provided loans to Britain.

4. Stability of the British economy: Despite the war, the British economy remained relatively stable, which made it an attractive borrower. The US saw this as an opportunity to invest in a reliable country and earn interest on the loans.

Impact of borrowing:
1. Debt burden: The loans from the United States added to Britain's national debt, which had already increased due to the war. This debt burden had long-term implications for the British economy and required substantial efforts to repay in the post-war period.

2. Strengthened ties: The loans from the United States helped to strengthen the economic ties between the two countries. This laid the foundation for future economic cooperation and trade relations between Britain and the US.

3. Economic dependency: Britain's reliance on loans from the United States highlighted its economic vulnerability during the war. While it provided immediate financial support, it also created a dependency on external sources, which could have long-term consequences.

In conclusion, Britain borrowed large sums of money from the United States during the First World War due to the economic power and stability of the US, increased trade relations, and the need for financial support to sustain its war efforts.