What Is/are the Lesson(s)learned from the Stock Market Crash of 1929

question 18

Multiple Choice

What is/are the lesson(s) learned from the stock market crash of 1929?

• A) Statements and opinions of federal officials can and do impact consumer and business optimism and pessimism regarding stocks and other financial markets, leading to volatile buying and selling behaviors.
• B) Portfolio diversification is important.
• C) One segment of the aggregate market economy can experience events that impact the economy?as a whole.
• D) Reflection, analysis and evaluation are often required to understand why an event occurred and what can be done to prevent it from happening in the future.

Understand the benefits and limitations of different research methods in psychology, including naturalistic observation, surveys, case studies, and experiments.

Recognize the importance of using representative samples in surveys to ensure validity of the findings.

Identify the role of operational definitions in scientific research.

Differentiate between correlational research and experimental research in terms of their ability to establish cause-and-effect relationships.

---

Definitions:

Income Summary

An account used in the closing process that summarizes revenues and expenses for a period before transferring the net income to retained earnings.

General Ledger

A complete record of all financial transactions over the life of a company, organized into debits and credits across various accounts.

Capital Account

An account showing the net changes in property ownership and transfer of payment among countries for international transactions, or in a company's context, represents the stake of owners in the firm.

Revenue Accounts

Accounts that record the income generated from the sale of goods and services, before any expenses are subtracted.