Which of the following was part of the reason for the stock market crash?
A) the high rate of deflation in the 1920s
B) the tax policies of the 1920s that hurt the wealthy, who might otherwise have bought more stocks
C) the buying of great amounts of stock on margin
D) the low tariff, which allowed imports to corner several important American markets
E) the remarkably poor returns on government bonds in 1929

Question

Quizplus · Accepted Answer

The buying of great amounts of stock on margin, or buying stocks with borrowed money, was a major contributor to the stock market crash of 1929. When stock prices began to fall, many investors were unable to pay back their loans, leading to massive sell-offs and further stock market decline.

Which of the Following Was Part of the Reason for the Stock