Which best explains why people failed to make their promised payments on items during the 1920s? they bought too little. they bought too much. they bought on margin. they speculated.

The correct answer is they bought too much.

During the 1920's, many Americans bought stocks on credit. This meant that the person only had to pay 10% of the price of the stock. The other 90% would come from a loan given by the bank. This purchasing method allowed Americans to buy more stocks than they could originally afford. Along with this, many people used a similar method to buy luxury goods like cars, home appliances, etc.

Buying on credit lead to significant problems, as many people lost their fortune when the stock market crashed in 1929. After the crash, many Americans had no real currency to pay the bank. Rather, they only had stocks that had very little value.

letter d is correct.