America's Foreign Policy Practice Exam 2025 – Comprehensive Test Prep

The primary goal of the U.S. in Nicaragua during the Reagan administration was to fund and arm the Contra rebels against the Sandinista government. The Sandinistas, who came to power after the Nicaraguan Revolution in 1979, had close ties to the Soviet Union and were seen as a socialist regime. This raised concerns in the Reagan administration regarding the spread of communism in Central America during the Cold War.

Supporting the Contras was viewed as a means to counteract the influence of the Sandinista government, which the U.S. government considered to be a threat to democracy in the region. The Contras, a loosely organized group of rebels, opposed the Sandinista government and aimed to overthrow it. Therefore, by providing financial and military assistance to the Contras, the Reagan administration sought not only to destabilize the Sandinista regime but also to prevent communist expansion in Central America, reflecting the broader strategy of containment that characterized U.S. foreign policy during the Cold War.

The other options such as establishing a direct military presence, supporting the Sandinista government, or focusing solely on economic development do not align with the predominant U.S. policy objectives in Nicaragua at this time, which were primarily centered around