ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Hong Kong
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United States
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Europe
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Russia
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new Zealand
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Detailed explanation-1: -“Black Monday” refers to the catastrophic stock market crash that occurred on Monday, October 19, 1987. The crash occurred worldwide, starting in Hong Kong and spreading throughout Asia and Europe before reaching the United States.
Detailed explanation-2: -When measured in United States dollars, eight markets declined by 20 to 29%, three by 30 to 39% (Malaysia, Mexico and New Zealand), and three by more than 40% (Hong Kong, Australia and Singapore). The least affected was Austria (a fall of 11.4%) while the most affected was Hong Kong with a drop of 45.8%.
Detailed explanation-3: -Remember 1987? Investors who were around at the time definitely do. On Oct. 19 of that year, the Dow Jones Industrial Average fell 22.6%-the largest one-day drop in that index’s history.
Detailed explanation-4: -In the United States, the Dow Jones Industrial Average (DJIA) dropped 22.6 percent in a single trading session, a loss that remains the largest one-day stock market decline in history. At the time, it also marked the sharpest market downturn in the United States since the Great Depression.