Which one of the following statements concerning the stock market is correct?
A)Leverage was one of the contributing factors of the Crash of 1929.
B)"Black Monday" refers to October 29, 1929.
C)Program trading is cited as the sole cause of the Crash of 1987.
D)Generally speaking, market crashes tend to last longer than market bubbles.
E)It took the market 10 years to recover from the Crash of 1987.

Question

Quizplus · Accepted Answer

Leverage, or the use of borrowed money to invest, was a major contributing factor to the Crash of 1929. Many investors had borrowed heavily to buy stocks, and when the market declined, they were forced to sell at a loss, which exacerbated the downturn.

Which One of the Following Statements Concerning the Stock Market