which was a cause of the stock market crash in 1929

A: Banks had used the money people had put into banks to play the stock market

B: Banks refused to lend investors the money they needed to keep buying stocks

C: Too many investors tried to get in on buying the best stocks

D: Too few investors were willing to purchase a wide range of stocks

Question

10-03-2017
History

Answered

which was a cause of the stock market crash in 1929

A: Banks had used the money people had put into banks to play the stock market

B: Banks refused to lend investors the money they needed to keep buying stocks

C: Too many investors tried to get in on buying the best stocks

D: Too few investors were willing to purchase a wide range of stocks

Verified Answer :

Related Questions

select the correct response the least valued coin minted in the united states is called a

A student solved this problem by making a table Jason has 160 Liam has 120 In how many years will they both have the same amount of money if Jason saves 100 per

A national park has eighty thousand nine hundred twenty three and eightysix hundredths acres of land with shows thus in standard form

Why is chew with your mouth closed important to you

Savings accounts usually offer interest rates than checking accounts It is to access your money in a savings account than in a checking account A lower harder B

11 If a single mutation turns off the growth of some pairs of legs within an organism whats most likely affected

in an appropriate environment guppies reproduce arian astounding rate A population of breeding guppies quadruples every month how many guppies will there be aft

What was the geography like in the Ancient Greek CityState of Argos

which of the following is not part of the nucleotide a phosphate b saturated lipid c nitrogenous base d deoxyribose sugar

7 Define and Explain Creativity

trombonegoddess16 trombonegoddess16 · Answer 1 · 2017-03-10T17:42:04-05:00

ABanks had used the money people had put into banks to play the stock market
During the 1920's people were investing like crazy and they depended on banks to take care of their money. Unfortunately, banks invested that money expecting to gain it back and make a profit, but when the stock market crashed in October of 1929, all the money they invested was lost. People started freaking out trying to get their money out of the banks, but it was lost in the stock market.

MrZieleniewo MrZieleniewo · Answer 2 · 2018-12-04T11:23:29-05:00

Answer: A. Banks had used the money people had put into banks to play the stock market.

Explanation:

There was much speculative buying on the stock market in "the Roaring '20s," as the decade was known. In the 1920s, people were so eager to invest and earn profits through the stock market that they bought stocks "on margin." In other words, they paid for only a marginal percentage of the stocks with their own funds, and borrowed bank funds for the rest of the purchase. That meant the banks were complicit in this arrangement too, by allowing those sorts of loans. By the late 1920s, 90% of the purchase price of stocks was being made with borrowed money. This inflated the market in a way that spiraled out of control, and in 1929 the market crashed.