QUESTION IMAGE
Question
- what were investors afraid the federal reserve board would do in march 1929?
end its policy of deregulation of the stock market
force the stock market’s paper value to match its real value
stop sales of rca stock
make it harder to buy and sell stocks on the stock market
In March 1929, the Federal Reserve was concerned about excessive stock market speculation fueled by easy credit. Investors feared the Fed would tighten credit, which would raise margin requirements and make it harder to trade stocks by increasing the cost of borrowing to buy shares. The other options do not align with the actual concerns of that time: deregulation was not the focus, the Fed did not target specific stock sales like RCA, and forcing paper value to match real value was not a relevant policy fear.
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D. make it harder to buy and sell stocks on the stock market