One of the main factors which contributed to the Stock Market Crash in 1929, when the very loose regulations related to margin orders.
In financial terms, margin in an instrument which consists on depositing a collateral with a counterparty (generally the broker) to cover some of the credit risk that the depositor places to that counterparty.
In the 1920s, the mandatory requirements regarding margins were not very strict, and brokers asked investors to put in a small fraction of their own money. Leverage rates which measure the proportion of debt, reached 90% with a high frequency. Nowadays, the Federal Reserve has established the limit of 50%.
Back in 1929, when the stock market started to contract, many investors received margin calls. They had to hand in more money to their brokers, because the amounts required before were not enough and if not, their shares would be sold. Many people did not have the extra margin amounts required, their shares were sold and the market declined further. This generated more margin calls and more declines. This is why margin calls were one of the causes which triggered the Stock Market Crisis and, in turn, the Great Depression in 1929.
Answer:
B. The United States provided weapons to support anti-government groups in Afghanistan.
Explanation:
The US sent aid and boycotted all things Soviet.
Answer:
The West demands trade with Japan
Perry, on behalf of the U.S. government, forced Japan to enter into trade with the United States and demanded a treaty permitting trade and the opening of Japanese ports to U.S. merchant ships.
Explanation:
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B) Executive Order
He federalized the national guard to enforce the law (Brown v. Board of Education).
By insuring bank deposits up to $5,000.
The FDIC was a part of the New Deal programs of legislation during the presidency of Franklin Delano Roosevelt (FDR). FDR signed the measure into law in June, 1933. The program went into effect as of January 1, 1934. Banks soon learned they needed to enroll in FDIC or customers wouldn't come to their banks.
