Question
Which of the following was a cause of the stock market crash in 1929?
Banks refused to lend investors the money they needed to keep buying stocks.
Too few investors were willing to purchase a wide range of stocks.
Many banks had used the money people had put in them to play the stock
market. They were also lending money to people who were playing the stock
market because they thought prices would continue rising.
Too many investors tried to get in on buying the best stocks.
Answer
Many banks had used the money people had put in them to play the stock market. They were also lending money to people who were playing the stock market because they thought prices would continue rising.