Question

What made Americans so willing to engage in stock market speculation in the 1920s?

A. People were in an optimistic mood, and they were willing to take a risk.
B. Speculation was the lowest-risk way to invest in the stock market.
C. People felt they had little to lose, and there were few other options.
D. Speculation helped many low-income people move to the middle class.

Answer 1

It would be A cause People were in an optimistic mood, and they were willing to take a risk

Answer 2

A. People were in an optimistic mood, and they were willing to take a risk.

Step-by-step explanation:

The crash of 29 was preceded by a speculative boom that had emerged in the early 1920s and had led hundreds of thousands of Americans to invest heavily in the stock market, even a significant number lending money to buy more shares. By August 1929, brokers routinely lent to small investors more than 2/3 of the value of the shares they bought. More than $ 8.5 billion had been borrowed, more than the total amount that was circulating at the time in the US Ascending stock prices encouraged more people to invest: they expected stock prices to grow even more. . Then, speculation caused higher rises and created an economic bubble. The average PER (Price to Earnings Ratio) of the S & P compound shares was 32.6 in September 1929, clearly above historical standards. Many economists see this event as the most dramatic in modern economic history.