11
QuizMultiple Choice

Boom and Bust

Question 11 • [HSSUS] US History, Sem 1 (26-27)

During the 1920s, buying stock on credit was called

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

Explanation

Buying stock on credit means borrowing part of the money needed to purchase it. This practice was called buying on margin. A margin call is a demand to add funds when the value of a margin investment falls, so it is not the name for the original purchase.

AI-written and checked against the verified answer.

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