Which One of These Statements Related to the Crash of 1987

question 10

Multiple Choice

Which one of these statements related to the Crash of 1987 is false?

• A) Program trading is at least partially to blame for the market meltdown.
• B) Between August and October 1987 the market declined over 40 percent.
• C) In some cases, it became impossible to contact a market maker.
• D) Trading volume exceeded the market's capacity to handle the order flows.
• E) Following the Crash of 1987, the market continued to slowly decline over the following year.

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Definitions:

Pay Package

The total compensation, including salary, benefits, bonuses, and any other financial rewards, offered to an employee by an employer.

Labor Union

An organization that acts on behalf of all employees in negotiations with the employer regarding terms of their employment.

Wagner Act

Also known as the National Labor Relations Act of 1935, it established the right of workers to form unions and engage in collective bargaining.

Taft-Hartley Act

A U.S. federal legislation from 1947 that limits the power and actions of trade unions.