Question

What was the result of the margin calls from brokers on October 21, 1929?

options:

A panic ensued and people began to sell their stocks, causing prices to dive.

Brokers began to extend more credit to people in order to prop up the market.

Investors began to purchase more on margin calls in the hope of driving up prices.

Many investors held on to their stocks in the hopes that the market would rise again.

Answer 1

Answer:

The right answer is "A panic ensued and people began to sell their stocks, causing prices to dive."

Explanation:

The margin calls made by brokers cause a mini-crash of the market on March 25, 1929. Prices plummeted. There was a temporary solution when some prominent bankers promised they would continue to lend, assuaging investors´concerns.

Answer 2

Answer:

A panic ensued and people began to sell their stocks, causing prices to dive.

Explanation: