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

Question

Quizplus · Accepted Answer

Buying of great amounts of stock on margin allowed people to borrow money to buy stocks, which in turn created a speculative bubble in the market. When the market started to decline, many people were forced to sell their stocks to cover their margin loans, contributing to the crash.

Part of the Reason for the Stock Market Crash Was