Which statement explains why "excessive use of credit" was a cause of the Great Depression?

a. Throughout the 1920s, most of the population borrowed money to invest in the stock market.
b. Throughout the 1920s, warning signs of economic collapse made people reluctant to pay cash.
c. Borrowing money based on the belief that default was an option led people to lie on loan applications.
d. Borrowing money based on a belief that the economy would expand led people to take financial risks.

Question

Which statement explains why "excessive use of credit" was a cause of the Great Depression?

a. Throughout the 1920s, most of the population borrowed money to invest in the stock market.
b. Throughout the 1920s, warning signs of economic collapse made people reluctant to pay cash.
c. Borrowing money based on the belief that default was an option led people to lie on loan applications.
d. Borrowing money based on a belief that the economy would expand led people to take financial risks.

anonymous · Answer

CORRECTION !
It is either B, C, or D. Hope I helped.

WRONG - A. Throughout the 1920s, most of the population borrowed money to invest in the stock market.

B. Throughout the 1920s, warning signs of economic collapse made people reluctant to pay cash.

C. Borrowing money based on the belief that default was an option led people to lie on loan applications.

D. Borrowing money based on a belief that the economy would expand led people to take financial risks.