Use the cause and effect table to answer the question.

Question

Cause
Effect
Investors often bought stocks "on margin."
?
Which event best completes the table?
(1 point)
• Individual stocks experienced relatively little change in price over time.
• Government regulations led people to pull their money from the market.
• Declines in stock prices eliminated personal savings and left investors in debt.
• A booming stock market distributed wealth broadly across a majority of Americans.

Answer 1

The event that best completes the table is:

• Declines in stock prices eliminated personal savings and left investors in debt.

This option describes the effect of buying stocks "on margin," which means investors are borrowing money to buy more stocks than they can afford. If stock prices decline, those investors can lose substantial amounts of money, leading to significant debt and financial ruin.