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Investing Basics Intermediate:
Understanding Bull and Bear Markets
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Choose wisely. There is only one correct answer to each question.
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1.
Which of the following does not contribute to bull or bear markets?
Choose wisely. There is only one correct answer.
The supply of available securities
The influence of government
Investor demand for securities
Past bull or bear markets
Past bull or bear markets. Only present behavior can determine such markets.
2.
Bull market investors seek _______ more than anything.
Choose wisely. There is only one correct answer.
Large dividends
Income
Growth
Growth. Bull markets are about rising prices, and rising prices are what growth is about. Therefore, income and dividends are secondary.
3.
Why do bonds perform well during bear markets?
Choose wisely. There is only one correct answer.
Their returns rise during bear markets
Their returns stay the same
They keep stock prices up
They don't
Their returns stay the same. Bond returns are fixed no matter what the market. They can't rise or fall.
4.
What was the longest bear market in the United States?
Choose wisely. There is only one correct answer.
The period following the Panic of 1837
The period following the Civil War
The Great Depression
The inflationary era and oil embargo of the 1970s
The Great Depression. By far, this was the longest bear market.
5.
The net advance measures the difference between the number of stocks advancing in price and the number declining in price.
Choose wisely. There is only one correct answer.
True
False
True. From this comes the advance-decline line.
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