SAT Subject US History Practice Question 304: Answer and Explanation
15. The stock market crash of October 29, 1929, had all the following effects EXCEPT:
A. Shareholders were forced to sell their stocks at huge losses.
B. Businesses failed when banks called in loans they could not repay immediately.
C. Brokers demanded immediate payment of money owed to them for stocks purchased on margin.
D. Borrowers began defaulting on their loan payments to banks, triggering widespread bank failures.
E. More and more people began buying on credit because there was a shortage of cash.
Correct Answer: E
After the stock market crashed, it became much more difficult to make purchases on credit.