Question

Part of the reason for the stock market crash was:

the tax policies of the 1920s, which especially hurt the wealthy who might otherwise have brought more stocks.

the buying of great amounts of stock "on margin“ (using borrowed funds).

the low tariff, which allowed imports to corner several important American markets.

None of the above

Answer 1

The correct answer should be the buying of great amounts of stock "on margin“ (using borrowed funds).

People believed that stocks would keep growing indefinitely so they borrowed money to purchase more stocks. When the stocks couldn't grow as fast as the deadlines for returning money, people started losing large amounts of money and destroying the economy which lead to the Great Depression.