Use the cover illustration showing The Great Financial Panic of 1873 to answer the question.

Question

What was so dangerous about the “panic” shown in the illustration?

A.
There was a fear that men were rushing to sell stocks in a way that would cause the market to collapse.

B.
There was a fear that men were rushing to buy property at a rate that would drive up the price of stocks.

C.
There was a fear that the market was generating so much profit that businesses couldn’t keep up with demand.

D.
There was a fear that the market was becoming so large that businesses were making too many investments.

SAY THE CORRECT ANSWER AND EXPLAIN WHY, DON'T GUESS

Answer 1

A. There was a fear that men were rushing to sell stocks in a way that would cause the market to collapse. This is the correct answer because the illustration shows a crowd of men rushing to sell stocks, which could lead to a market collapse if too many stocks were sold at once.