Which was a cause of the stock market crash in 1929

A: Banks had used the money people had put into banks to play the stock market

B: Banks refused to lend investors the money they needed to keep buying stocks

C: Too many investors tried to get in on buying the best stocks

D: Too few investors were willing to purchase a wide range of stocks

Question

Clay Mcdowell

History

9 September, 14:42

Which was a cause of the stock market crash in 1929

A: Banks had used the money people had put into banks to play the stock market

B: Banks refused to lend investors the money they needed to keep buying stocks

C: Too many investors tried to get in on buying the best stocks

D: Too few investors were willing to purchase a wide range of stocks

+2

Answers (1)

Know the Answer?

Mollie Hutchinson · Answer 1

A. Banks had used the money people had put into banks to play the stock market

During the 1920's people were investing like crazy and they depended on banks to take care of their money. Unfortunately, banks invested that money expecting to gain it back and make a profit, but when the stock market crashed in October of 1929, all the money they invested was lost. People started freaking out trying to get their money out of the banks, but it was lost in the stock market.