5
AssignmentMultiple Select

Boom and Bust

Question 5 • [HSSUS] US History, Sem 1 (26-27)

Based on what you have read and learned, which of the following factors could have contributed to the 1929 stock market crash? Check all of the boxes that apply.

Answer
A
Stockbrokers and others were unable to pay their margin debts.
B
Major banks took no steps to help the market.
C
There was a general loss of confidence in the stock market.

Explanation

Investors who bought stocks on margin borrowed money, and falling prices left some stockbrokers and investors unable to repay those debts, adding pressure to the market. The sharp decline also caused a general loss of confidence, prompting more people to sell. Major bankers did try to support the market, so the claim that they took no steps is not accurate.

AI-written and checked against the verified answer.

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