Question

Which was an effect of the booming stock market in the 1920s?

It encouraged people to borrow money to buy stocks.

It raised prices of farmers’ crops.

It ended unemployment in the United States.

It made most Americans wealthy.

Answer 1

The answer is: A: It encouraged people to borrow money to buy stocks.

With the boom, banks began to give loans where they once had not. This risk of borrowing money from the bank was, in most people's view, a rewarding risk.