Option A ( It provided land for the construction of schools). This is why margin calls were one of the causes which triggered the Stock Market Crisis and, in turn, the Great Depression in 1929.
This generated more margin calls and more declines. Many people did not have the extra margin amounts required, their shares were sold and the market declined further. They had to hand in more money to their brokers, because the amounts required before were not enough and if not, their shares would be sold. Nowadays, the Federal Reserve has established the limit of 50%.īack in 1929, when the stock market started to contract, many investors received margin calls. Leverage rates which measure the proportion of debt, reached 90% with a high frequency. In the 1920s, the mandatory requirements regarding margins were not very strict, and brokers asked investors to put in a small fraction of their own money. In financial terms, margin in an instrument which consists on depositing a collateral with a counterparty (generally the broker) to cover some of the credit risk that the depositor places to that counterparty.
One of the main factors which contributed to the Stock Market Crash in 1929, when the very loose regulations related to margin orders. It also was one of the earlier examples of broad coalition building as the U.S intervened as part of an alliance of nations. Intervention in China (Boxer Rebellion) - The intervention in China to suppress the Boxer rebellion was an important aspect in U.S foreign policy as it showed America's willingness to intervene militarily and to use force to secure its influence and interests. The Panama Canal had massive implications for the exercise of American foreign policy and military might it greatly shortened the sea travel distance for both commercial and military vessels from the East to West coast, therefore making it easier for the U.S to exercise its influence in the pacific rim.ģ. First it led to the United States' supporting secessionist factions, who separated the republic of Panama from Colombia, and it also led to the granting of sovereign land rights to the United States over the Panama Canal Zone. The Building of the Panama Canal (1903) - The construction and completion of the Panama Canal has a number of important foreign policy implications. The acquisition of the Philippines in particular led to permanent American involvement in Asian affairs.Ģ.
The war also led to America aquiring territories and colonies in the Caribbean Sea and Pacific Ocean (the Philippines, Cuba, Puerto Rico, The Marianas and a host of other territories). The Spanish American War (1898) - The Spanish American war signaled America's rise and the relative decline of the European powers.
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