Question

What were the factors that led to the stock market collapse on Black Tuesday?

A.
underproduction, lack of government regulation, and bank runs

B.
underproduction, too much government regulation, and bank runs

C.
overproduction, too much government regulation, and bank runs

D.
overproduction, lack of government regulation, and bank runs

Answer 1

unemployment had risen, leaving stocks in great excess of their real value. Among the other causes of the eventual market collapse were low wages, the proliferation of debt, a struggling agricultural sector and an excess of large bank loans that could not be liquidated.

Answer 2

The factors that led to the stock market collapse on Black Tuesday were overproduction, lack of government regulation, and bank runs.

What is Black Tuesday in the stock market?

Black Tuesday is hit the Wall Street stock exchange of New York city as investors lost billions of their money in a single day, which made investors withdraw their funds from the stock market in 1929.

What were the causes behind the crash of the stock market?

The major cause behind it was the overproduction of crops from farmers as well as from factories' goods.  The people started becoming unemployed due to low wages and low demand. Hence, the government made higher regulations as the crisis of making banks run started to arise.

Learn more about the stock market crash here:

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