Which of the Following Was True of Many American Businesses

question 26

Multiple Choice

Which of the following was true of many American businesses in 1929?

• A) In anticipation of an economic downturn in the 1930s, they had significantly reduced their inventories.
• B) Having misrepresented their assets to obtain loans, they were overburdened with debt.
• C) They enjoyed relatively high profits because of the expansion of foreign markets.
• D) They incurred heavy losses of capital by shifting their investments from the United States stock market to less profitable European markets.

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Definitions:

Overdraft Fee

A charge imposed by a bank when a transaction exceeds the account's available balance, resulting in a negative balance.

Maintenance Fee

A periodic charge imposed by banks, credit unions, or HOAs to cover the cost of services or upkeep.

Compounds Interest Monthly

The process where the interest earned on an investment is calculated monthly and added to the principal sum, leading to an increase in the total amount of interest earned over time.

Compounded Monthly

The process of calculating interest on both the initial principal and the accumulated interest from previous periods on a monthly basis.