The Quiz: Although an independent country, Palau maintains a Compact of Free Association with what larger nation?
A Australia
B Japan
C United States
In 1994, the Republic of Palau gained full sovereignty after it entered into an agreement with the US, which provides defense and social services. The compact gave Palau needed infrastructure support and full independence, while allowing the US increased military and economic influence in the region. Over the last few hundred years, the islands of Palau have been under the control of various world powers, such as Spain, Germany, Japan, and the US. Palau uses the US dollar as its currency and even has two US ZIP codes for mail delivery. The US also maintains compacts with the Republic of the Marshall Islands and the Federated States of Micronesia.
The correct answer to this quiz is United States.