Question

Based on what you have learned about the Stock Market Crash of 1929, which of the following might help you spot another stock market crisis?

Consumers demonstrate a loss of confidence in the stock market.

Stock prices show a small growth over a few days.

Many shareholders buy stocks on margin.

The value of the stock market drops twenty percent in a single day.

Answer 1

Consumers demonstrate a loss of confidence in the stock market.

Step-by-step explanation:

The 1929 stock market crash was characterized by the sudden rush of consumers taking money out of banks and investments.

Answer 2

The value of the stock market drops twenty percent in a single day

Consumers demonstrate a loss of confidence in the stock market

Many shareholders buy stocks on margin

Step-by-step explanation:

If the the stock market suddenly drops, it's a clear sign that something bad is about to happen. Buying on a margin was one of the things that the Federal Reserve was desperately trying to control because it was causing problems. And also, if the consumers lose confidence on the stock market, there must be a reason behind it.