A key reason that the stock market crash of 1987 was so large was the increased use of , and thus provoked the use of .
A)computers and program trading; circuit breakers
B)computers; margin requirements
C)poor expectations; better asset information
D)human error; margin requirements

Question

Quizplus · Accepted Answer

The increased use of computers and program trading allowed trades to be executed at a faster pace and with greater volume, contributing to the drastic decline in prices. This led to the triggering of circuit breakers, which temporarily halted trading but also caused panic among investors. Margin requirements did not directly contribute to the crash but were a factor in some investors being unable to meet their obligations during the aftermath. Poor expectations and better asset information may have played a role but were not the primary reason for the crash. Human error was also a factor but not to the extent that computers and program trading were.

A Key Reason That the Stock Market Crash of 1987