5
practice testMultiple Choice

Practice Test

Question 5 • US History Studies Since 1877

Which best describes what people could buy on credit in the 1920s?

Answer
A
People could buy only expensive goods, such as cars.
B
People could not buy stocks but could buy expensive items.
C
People could buy stocks and goods from most stores.
D
People could buy only essential goods from limited stores.

Explanation

In the 1920s, buying on credit became common: many stores let customers pay for consumer goods in installments, and investors could also buy stocks using borrowed money, called buying on margin. So people were not limited to expensive or essential goods; choice A, “People could buy stocks and goods from most stores,” is the best description.

AI-written and checked against the verified answer.

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