what were the factors that led to the stock market collapse on black tuesday

Question

answer choices:

underproduction, lack of government regulation, and bank runs

underproduction, too much government spending, and bank runs

overproduction, too much government regulation, and bank runs

overproduction, lack of government regulation, and bank runs

Answer 1

The factors that led to the stock market collapse on Black Tuesday (October 29, 1929) can be best described by the answer choice:

overproduction, lack of government regulation, and bank runs.

During the late 1920s, there were significant issues of overproduction in various industries, which led to falling prices and reduced revenue for companies. Additionally, there was a lack of effective government regulation of the stock market and banking practices, which contributed to speculative investments and excessive risk-taking. Finally, as the market began to crash, bank runs occurred as people rushed to withdraw their deposits, further exacerbating the financial crisis.