7
QuizMultiple Choice

Boom and Bust — Quiz

Question 7 • US History Studies Since 1877

During the 1920s, buying stock on credit was called

Answer
A
buying on margin.
B
buying on speculation.
C
buying on margin call.
D
buying on a gamble.

Explanation

Buying stock on credit—using borrowed money to pay for part of the purchase—was called buying on margin. The investor paid a portion of the stock’s price and borrowed the rest from a broker, so the correct choice is “buying on margin.”

AI-written and checked against the verified answer.

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