Question

A main effect of speculative investment during the 1920s was that it

A. Contributed to the stock market crash of 1929.
B. Led to great economic growth.
C. Resulted in stocks gaining value over time.
D. Led to overproduction in the agricultural industry.

Answer 1

A main effect of speculative investment during the 1920s was that it contributed to the stock market crash of 1929.

Answer 2

The answer that best completes the statement above is option A: Contributed to the stock market crash of 1929. The stock market crash of 1929 is actually known as the Black Tuesday, or the Great Crash. It is said to be the worst stock market crash in the United States. When we say speculative investment, this is the kind of investment that possesses the highest risk which focuses on the fluctuation of prices.