in the 1920s, the danger of buying stock on credit was that if the stock dropped, borrowers could not repay…
in the 1920s, the danger of buying stock on credit was that if the stock dropped, borrowers could not repay loans used to buy the stock. lost ownership of the stock. could no longer speculate on stock. could no longer get credit.
Answer
Brief Explanations:
When buying stock on credit in the 1920s, if stock prices dropped, the value of the stock was insufficient to cover the loan amount, making it difficult for borrowers to repay the loans.
Answer:
A. could not repay loans used to buy the stock.