Of the following,which occurred after the stock market crash in 1929?
1.The establishment of the Federal Deposit Insurance Corporation
2.The Wealth in the country owned by a small percentage of people
3.stocks being bough on the margin
4.use of credit to make purchases
Yes.
https://www.investopedia.com/terms/f/fdic.asp
I think it's 2?
Nope. What does your text say?
I can't really find anything in my text. It mostly is just telling me about how it started the great depression and that the economy fell apart basically. So if it isn't that the wealth of the country was owned by a small amount of people, and I know it shouldn't be stocking being bought because everyone was trying to sell theirs in a panic would it be 1? The establishment of the FDIC?
Thank you so much!
You're welcome.
To determine which options occurred after the stock market crash in 1929, we can examine each option individually:
1. The establishment of the Federal Deposit Insurance Corporation (FDIC):
The FDIC was established as a response to the Great Depression, which followed the stock market crash. It was created in 1933, several years after the crash. Therefore, option 1, the establishment of the FDIC, occurred after the stock market crash.
2. The wealth in the country owned by a small percentage of people:
The concentration of wealth in the hands of a small percentage of people was a pre-existing condition that existed before the stock market crash. While the crash did have an impact on wealth distribution, it did not directly cause this condition. Therefore, option 2, the wealth concentration, cannot be attributed solely to the stock market crash.
3. Stocks being bought on margin:
Buying stocks on margin refers to using borrowed funds to purchase stocks, with the stocks themselves acting as collateral. This practice was prevalent during the 1920s, leading up to the crash, as it allowed investors to speculate and amplify their potential returns. The stock market crash exposed the risks associated with buying on margin, and as a result, regulations were implemented to control this practice. Therefore, option 3, buying stocks on margin, occurred before and during the stock market crash.
4. Use of credit to make purchases:
The use of credit to make purchases was a common practice both before and after the stock market crash. Consumer credit expanded during the 1920s, allowing people to make purchases on installment plans and pay for them over time. While the crash had an impact on the availability of credit, the use of credit remained a common practice in the years following the crash. Therefore, option 4, the use of credit, both preceded and followed the stock market crash.
To summarize, options 1 and 4 occurred after the stock market crash in 1929. Option 2 was a pre-existing condition, and option 3 occurred both before and during the crash.