Which was a cause of the stock market crash in 1929

a: banks had used the money people had put into banks to play the stock market

b: banks refused to lend investors the money they needed to keep buying stocks

c: too many investors tried to get in on buying the best stocks

d: too few investors were willing to purchase a wide range of stocks

 A. Banks had used the money people had put into banks to play the stock market.

Explanation:

There was much speculative buying on the stock market in "the Roaring '20s," as the decade was known.  In the 1920s, people were so eager to invest and earn profits through the stock market that they bought stocks "on margin."  In other words, they paid for only a marginal percentage of the stocks with their own funds, and borrowed bank funds for the rest of the purchase.  That meant the banks were complicit in this arrangement too, by allowing those sorts of loans. By the late 1920s, 90% of the purchase price of stocks was being made with borrowed money.  This inflated the market in a way that spiraled out of control, and in 1929 the market crashed.

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