Which statement best describes how investment in the stock market during the mid-to-late 1920s contributed to the Great
Depression?
A)
People were unable to repay the loans used to purchase stocks.
B)
Government taxes on stock transactions made it difficult to repay investors
c)
Financial institutions were not required to report earnings to stock
investors.
Foreign countries were not required to immediately pay stockholder
earnings.
D)

Investment in the stock market during the mid-to-late 1920s contributed to the Great Depression as people were unable to repay the loans used to purchase stocks.

Option A) is correct

Herbert Hoover was the president at that time. Americans hoped that there would be more economic growth but Hoover’s moderate policies were not enough to solve those problems.

Parrain Parrain · Answer 2 · 2021-11-19T12:54:11+01:00

Investment in the stock market in the later half of the 1920s contributed to the Great Depression because A) People were unable to repay the loans used to purchase stocks.

In the latter part of the 1920s:

The stock market was doing really well
People borrowed money to invest in stocks

When the stock market crashed, people lost the money they borrowed and so were unable to pay back banks which had given loans using people's money. The Great Depression then followed.

In conclusion, borrowing loans and being unable to pay them led to the great depression.

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