Question

All of the following contributed to the collapse of the stock market in 1929 except

Question 1 options:

investors bought stocks on margin.


businessmen started companies called "investment trusts" that bought stock on credit.


investors poured money into risky investments.


stock prices reflected the real value of companies.







How were the American people and businesses affected by the Depression?

Question 2 options:

All of the above

Families had little cash to buy goods.

Businesses laid off workers or closed down.

People lost their savings due to bank failures.

Answer 1

For the second one question:

People had their rights taken away. This is not the right answer

Families had little cash to buy goods.

Businesses laid off workers or closed down.

People lost their savings due to bank failures.

Step-by-step explanation:

Took the test

Answer 2

The correct answer is stock prices reflected the real value of companies.

Stocks didn't reflect the real value of the company because they had a much higher value than the company actually had. The companies weren't making profit yet were behaving as if everything was going smooth, so they started failing hard and by the time people realized they wouldn't get their money back, it was already too late.

The correct answer for 2 is All of the above

Companies were failing because they couldn't make a profit so they couldn't pay banks back which meant that people would get fired. The high unemployment led to mass starvation since there were no jobs and no money to buy food. The banks lost all the money because they crashed when the companies started crashing.