Drag the following choices to categorize them as causes or
effects of the stock market crash of 1929. (2 points)
Causes of the Stock
Effects of the Stock
Market Crash
Market Crash
1
Investors made
high-risk
purchases, often
using low down
payments.
Low interest rates
and a high money
supply encouraged
risky investments.
Banks demanded
immediate
payment for loans
they had given to
investors.
In one year, the
stock market lost
more than half its
value.



Answer :

Final answer:

Explanation of causes and effects of the Stock Market Crash of 1929.


Explanation:

Causes of the Stock Market Crash:

  1. Investors made high-risk purchases, often using low down payments.
  2. Low interest rates and a high money supply encouraged risky investments.
  3. Banks demanded immediate payment for loans they had given to investors.

Effects of the Stock Market Crash:

  1. In one year, the stock market lost more than half its value.
  2. The crash led to bank failures and caused many Americans to lose their life savings as well as their jobs.
  3. Investors who had bought stock with borrowed money faced bankruptcy as stock prices fell.

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