Which of the Following Was Part of the Reason for the Stock

question 20

Multiple Choice

Which of the following was part of the reason for the stock market crash?

• A) the high rate of deflation in the 1920s
• B) the tax policies of the 1920s that hurt the wealthy, who might otherwise have bought more stocks
• C) the buying of great amounts of stock on margin
• D) the low tariff, which allowed imports to corner several important American markets
• E) the remarkably poor returns on government bonds in 1929

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Definitions:

Voluntary

An action or decision made by an individual's own will without coercion or undue influence from others.

Secured Interest

A legal claim or lien on collateral pledged by a borrower to secure a loan, providing the lender with rights to the property if the borrower defaults.

Personal Property

Movable property that is not fixed to one location and can be owned by an individual, as opposed to real property or real estate.

Mutual-Benefit Bailment

A contractual agreement where both the bailor and bailee receive benefits from the arrangement of temporarily transferring personal property.