Which one of the following statements related to market crashes is correct?
A) Financial market crashes are unique to the United States.
B) A market crash tends to occur within a week but have effects that last many years.
C) Once the market finally crashed in 1929, stock prices began a long period of steady increases.
D) The market crash of 1987 occurred on a day when trading volume was light indicating there were a limited number of irrational investors involved.
E) Actions in Washington, D.C., may have helped contribute to the market crash in 1929 but not to the 1987 crash.

Question

Quizplus · Accepted Answer

Market crashes can occur suddenly, usually within a week, but their effects can last for many years. It is not unique to the United States, and the market crash of 1929 did not lead to a long period of steady increases. The market crash of 1987 occurred on a day with high trading volume, indicating that many investors were involved. The actions in Washington, D.C. may have contributed to both the market crashes.

Which One of the Following Statements Related to Market Crashes