Question

Which best explains what weakened the stock market in the late 1920s?
Consumers used cash for goods.
Speculators bought on margin.
Farmers underproduced crops.
Manufacturers increased prices.

Answer 1

Speculators bought on margin. Buying on margin became so popular that by the late 1920s, "ninety percent of the purchase price of the stock was being made with borrowed money." Not only that ... the U.S. economy had come to depend on that activity. Before the crash, nearly forty cents of every dollar loaned in America was used to buy stocks.
 Hope this helps. 

Answer 2

I think the correct answer from the choices listed above is second option. The statement that best explains what weakened the stock market in the late 1920s would be that speculators bought on margin. Hope this answers the question. Have a nice day.