The years after 1929 were disastrous for many American people. Why were speculators important in the events of 1929 ?

Level 4: Explains two reasons. 6 marks
Level 3: Explains one reason. 4-5 marks
Four marks for one explanation, five marks for explanation supported by specific contextual knowledge.
- They were people who thought they could make a quick profit from the US economy doing so well. They did this by buying shares. They often bought many more shares than they could afford, and this put the price of shares up, so more people bought them. This could not go on forever, and as soon as prices of shares stopped going up there was trouble.

Level 2: Identifies or describes valid reason(s); addresses the question but does not explain. 2-3 marks

One Level 2 mark for each identification/description.
- They bought lots of shares, putting the prices up even more.
- They were after a quick profit.
- They borrowed money from banks to buy shares they could not really afford.
- When share prices started to go down, the speculators panicked and soon the shares were worth nothing.
- They could not repay the banks, and they were ruined.
- They started a run on the banks which threatened to destroy the banking system.

Level 1: Writes about the topic but does not address the question. 1 mark
- The speculators were the ones who caused all the problems and made many people very poor. They ruined many people's lives.

Accept all valid responses.
Level 0: No creditable response. 0 marks