10
QuizMultiple Choice

Roaring Economy to Great Depression

Question 10 • EAP-Virginia and US History B CR

During the 1920s, people would buy stock on margin, which meant that they

Answer
A
bought it on credit.
B
paid cash for it.
C
paid in installments.
D
bought it on speculation.

Explanation

Buying stock on margin meant borrowing money from a broker to purchase shares, using the shares as security for the loan. In other words, buyers purchased stock on credit, rather than paying the full price in cash. The correct choice is “bought it on credit.”

AI-written and checked against the verified answer.

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