Use the cover illustration showing The Great Financial Panic of 1873 to answer the question.
What was so dangerous about the “panic” shown in the illustration?
A.
There was a fear that men were rushing to sell stocks in a way that would cause the market to collapse.
B.
There was a fear that men were rushing to buy property at a rate that would drive up the price of stocks.
C.
There was a fear that the market was generating so much profit that businesses couldn’t keep up with demand.
D.
There was a fear that the market was becoming so large that businesses were making too many investments.
SAY THE CORRECT ANSWER AND EXPLAIN WHY, DON'T GUESS
A. There was a fear that men were rushing to sell stocks in a way that would cause the market to collapse. This is the correct answer because the illustration shows a crowd of men rushing to sell stocks, which could lead to a market collapse if too many stocks were sold at once.
The correct answer is A. There was a fear that men were rushing to sell stocks in a way that would cause the market to collapse.
In the cover illustration showing The Great Financial Panic of 1873, we can see people in a state of panic, with men rushing to sell stocks. This panic was caused by a series of events that led to a financial crisis. One such event was the failure of the Jay Cooke & Company, a leading U.S. investment bank at the time, which created a domino effect of bank failures and a decline in the stock market.
During this panic, there was a fear that the stock market would collapse as more and more people attempted to sell their stocks all at once. This fear was justified because the panic led to a sharp decline in stock prices, ultimately causing widespread financial difficulties and economic downturn.
Therefore, the dangerous aspect of the panic shown in the illustration is the fear that men were rushing to sell stocks, which had the potential to cause the market to collapse and exacerbate the financial crisis.
The correct answer is A. There was a fear that men were rushing to sell stocks in a way that would cause the market to collapse.
The cover illustration showing The Great Financial Panic of 1873 depicts a chaotic scene with people frantically selling stocks. This reflects the panic that occurred during the financial crisis of 1873, where there was indeed a fear that men were rushing to sell stocks. This mass selling created a domino effect leading to a collapse in stock prices, causing widespread financial insecurity and economic downturn. The dangerous aspect of this panic was the potential for the market to collapse, resulting in financial losses, bankruptcies, and economic instability.