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
make it harder to buy and sell stocks on the stock market
stop sales of rca stock
In March 1929, the stock market was experiencing a speculative boom, with investors using easy credit to buy stocks. The Federal Reserve Board was concerned about overspeculation. Investors feared the Fed would take actions to tighten credit, which would raise margin requirements and make it more difficult to purchase (and subsequently sell) stocks, cooling the speculative market. The other options do not align with the primary concern of investors at that time: deregulation was not the policy in question, the Fed did not focus on forcing paper vs real value directly, and targeting RCA stock specifically was not a widespread fear.
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make it harder to buy and sell stocks on the stock market