9
AssignmentMultiple Select

Boom and Bust

Question 9 • [HSSUS] US History, Sem 1 (26-27)

Based on what you've learned about the stock market crash of 1929, which of the following might help you spot another stock market crisis? Check all of the boxes that apply.

Answer
A
a loss of confidence in the market
B
a small growth in stock prices over a few days
C
many shareholders buying stocks on margin
D
a twenty-percent drop in stock market value in a single day

Explanation

A loss of confidence can lead many investors to sell, pushing prices down sharply. Widespread buying on margin is risky because investors borrow money to buy stocks and may be forced to sell if prices fall. A one-day drop of 20% is also a strong warning sign; a small rise in prices over a few days, by itself, does not indicate a crisis.

AI-written and checked against the verified answer.