Question

Which of the following can be considered part of the reason for the stock market crash in 1929?



A. Consumers relied too much on the use of credit, so they overspent.
B. Gross national product (GNP) projections were made incorrectly.
C. Stocks of non-existent companies were illegally sold on the open market.
D. The wealthiest Americans were so wealthy money was simply unavailable to average citizens

Answer 1

one reason why the stock crashed is because the P/E rates were only an average of 60. and it has been deduced is that of margin buying. Investors had to pay just 10% of the total value of the stocks at the time of buying and the rest they could pay in installments. and the rates of interest were on the broker loans were unnaturally increased making it all the more difficult for the investors.most of these banks were insolvent and were closing at an equally faster rate as they were opening up. When the market crashed in 1929, the situations became worse. and most of the banks which had invested in stocks heavily couldn't were perished due to the market crash.

Answer 2

that's just a quick rough understanding of the reasons.

Answer 3

i hope this can help you :)

Answer 4

kind of i was thinking it was A would i be right

Answer 5

correct

Answer 6

i think anyways

Answer 7

im pretty sure of it