Infer what caused the Stock Market Crash of 1929? (Choose 5)

Question

A.
Americans purchased stocks on margin.
B.
Americans over speculated the stock market.
C.
Too many Americans conserved spending after World War I.
D.
Overproduction created an imbalance between supply and demand.
E.
National Recovery AdministrationHigh tariffs discouraged international trade.
F.
Not enough Americans invested in the stock market.
G.
American banks loaned too much money to other countries.
H.
The Federal Reserve failed to prevent the collapse of the banking system.

Answer 1

The Stock Market Crash of 1929 was caused by a combination of several factors. The five most relevant causes from your list are:

A. Americans purchased stocks on margin.
B. Americans over speculated the stock market.
D. Overproduction created an imbalance between supply and demand.
E. High tariffs discouraged international trade.
H. The Federal Reserve failed to prevent the collapse of the banking system.

These factors together contributed to the economic instability and lack of confidence that led to the crash.