The Question : What happened on Black Tuesday that caused the stock market to crash?
a. Depositors lost their investments and made runs on the nation’s banks
b. The Federal Reserve increased the money supply
c. Germany stopped its reparations payments
d. Investors lost confidence in the market and started to sell their shares.
So what is the correct answer? Answer:
The major reasons due to which the market crashed on Tuesday –
a) The investors became panic because they were not able to see their stocks and their respective values because they have no access to the information on internet.
b) The other reason for the panic was the new method for buying stocks, i.e buying on margin which led to loss of confidence of the investors
Hence, option D is correct
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