Question

A)
Read the following excerpt from The New York Times on October 30, 1929, after the Stock
Market Crash:
"Scores of issues, large and small, dropped to the lowest prices of the year or longer as the
bottom appeared to drop out of the stock market."
Which of the following factors contributed most directly to the stock market crash described
in this article?
(2 points)
Excessive stock speculation and buying on margin
The government's decision to increase interest rates
Declining agricultural prices in rural areas
International trade disputes and tariffs

Answer 1

The factor that contributed most directly to the stock market crash described in the article is **excessive stock speculation and buying on margin**. This practice allowed investors to purchase stocks with borrowed money, leading to inflated stock prices and a highly unstable market. When investors lost confidence and began to sell off their stocks, it triggered the crash.