Question

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

Answer 1

Answer:

The correct answer is A) Too many people invested in the market

Explanation:

During the 1920's, also known as the roaring twenties, the economy was strong, with high economic growth in agriculture, industries and services. This sustained growth over the years led to overconfidence in the market, and financial institutions began to offer cheap loans that people took eagerly because they were unafraid of the possible consequences. Besides, firms also began to offer more shares looking to expand their businesses. This led many americans to take loans to buy shares, which inflated the market bubble until it finally crashed in October 1929.