The correct answer is D) excessive credit expansion.
The factors that led to the stock market crash of 1929 was excessive credit expansion.
The US stock market crash occurred on October 29, 1929. This black Tuesday led to what is known as the Great Depression that lasted until 1939. Stocks were in excess of their real value due to excessive credit expansion and the decline of production and high unemployment. After the stock market crash, people lost their jobs, many companies closed, and banks went into bankruptcy.
