Which one of the following statements related to market crashes is correct?
A) Financial market crashes are unique to the United States.
B) A severe market decline tends to occur over a multi-day period.
C) Once the market finally crashed in 1929,stock prices began to slowly increase again.
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

A severe market decline tends to occur over a multi-day period, as opposed to happening in a single day. The other statements are incorrect: financial market crashes can occur in any country, stock prices did not increase after the 1929 market crash (they continued to decline for years), trading volume was high on the day of the 1987 market crash, and actions in Washington, D.C. may have played a role in both the 1929 and 1987 market crashes.

Which One of the Following Statements Related to Market Crashes