10
practice testMultiple Choice

Practice Test

Question 10 • United States History and Geography

A main effect of speculative investment during the 1920s was that it

Answer
A
resulted in stocks gaining value over time.
B
contributed to the stock market crash of 1929.
C
led to great economic growth.
D
led to overproduction in the agricultural industry.

Explanation

Speculative investing meant buying stocks in hopes of quickly selling them for a profit, often without regard to the companies’ actual value. This drove stock prices higher and helped create an unstable market. When confidence collapsed, prices plunged in the 1929 stock market crash, so the best answer is “contributed to the stock market crash of 1929.”

AI-written and checked against the verified answer.

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