Question

Can some one verify my answer please??


Which of these directly contributed to the stock market crash of 1929?

A. Tariff reductions
B. Buying on margin
C. Income tax increases
D. Agricultural subsidies

I really want to say C but I'm not sure

Answer 1

Ok.

Answer 2

@softball495

Answer 3

Is that it ??

Answer 4

Since you're covering the 20's I would say D.
Most of the people got their money from farming, and exporting crops and stuff.

Answer 5

But I'm not sure, w'ere covering the 20's in my class too.
So it's out of either C or D.

Answer 6

Oh that is very true thank you so much! Would you mind helping me on another one?

Answer 7

I have no problem with helping, just make sure you tag me so I can see!

Answer 8

@Locks I'm thinking its B instead I did some research

Answer 9

> Now that you have pointed that out that's also true.

> People were buying stock left and right, for cheap.

> Buying on margin is borrowing money from a broker to purchase stock.

> You can think of it as a loan from your brokerage. Margin trading allows you to buy more stock than you'd be able to normally.

> To trade on margin, you need a margin account. This is different from a regular cash account, in which you trade using the money in the account.