Question

Which of the following is a cause of the stock market crash of 1929?

Answer 1

The correct answer is B. Investors made risky investments with borrowed money

Explanation:

In economy, an stock market crash occurs when the stock prices decline dramatically which has effects on the paper wealth, during U.S. history there had been multiple stock market crashes but one of the most important was the one that occurred in 1929 and that led to Great Depression that was a major economic crisis in the U.S. It has been estimated the stock market crash was mainly caused by the multiple credits and the use of money obtained from credits to invest as during this period the economy and society of the U.S. was flourishing and this created overconfidence in investors that decided to get bank credits and invest massively in the stock even when this was risky and some of them had little money, this along with changes in economy led to the stock market crash in 1929. Therefore, the one that was a cause of the stock market crash was that investors made risky investments with borrowed money.

Answer 2

Answer:

Investors made risky investments with borrowed money

Explanation:

Investors made risky investments with borrowed money is a cause of the stock market crash of 1929.