25
QuizMultiple Choice

Unit Test — Unit test

Question 25 • MCPSS AL-Grade 6 United States Studies: The Industrial Revolution to the Present - Summer School 2026

What is the best definition of speculation, which was a cause of the Great Depression?

Answer
A
the act of borrowing money for goods and not paying debts
B
the act of taking great risks in the hope of making large profits
C
the act of paying too much money for a good that has little value
D
the act of investing in farming equipment to increase production

Explanation

Speculation means taking a financial risk in the hope of earning a large profit, often by buying assets expected to rise in value. During the 1920s, many investors speculated in the stock market, sometimes using borrowed money. The best definition is “the act of taking great risks in the hope of making large profits.”

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