3
QuizMultiple Choice

Boom and Bust

Question 3 • [HSSUS] US History, Sem 1 (26-27)

A strong stock market depends on

Answer
A
many investors speculating.
B
many investors buying on margin.
C
most consumers buying on credit.
D
overall confidence in the economy.

Explanation

A strong stock market is supported by broad confidence in the economy. When investors expect businesses and the economy to do well, they are more willing to buy and hold stocks, which can raise stock prices. Speculation, buying on margin, and consumer credit can occur in a strong market, but none is the underlying condition it depends on.

AI-written and checked against the verified answer.

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