Which one of these statements related to the Crash of 1987 is false?
A) Program trading is at least partially to blame for the market meltdown.
B) Between August and October 1987 the market declined over 40 percent.
C) In some cases, it became impossible to contact a market maker.
D) Trading volume exceeded the market's capacity to handle the order flows.
E) Following the Crash of 1987, the market continued to slowly decline over the following year.

Question

Quizplus · Accepted Answer

The statement that the market continued to slowly decline over the following year is false. After the Crash of 1987, the markets actually recovered relatively quickly, and by the end of 1989, the Dow Jones Industrial Average (DJIA) had regained all of the losses from the crash.

Which One of These Statements Related to the Crash of 1987