Have you ever gotten a hot stock tip and been tempted to buy up a bunch of shares using all of your savings? Before you empty your bank account, take our quiz to learn about stock market trends and their effect on individual stocks. The inevitable fluctuations of the stock market may be a bit too nerve-wracking for your taste.
The best way to understand how the stock market works is by studying:
stock market trends
stock market prices
stock market indicators
Which of the following factors can affect stock market prices?
both of the above
Sudden rises or drops in stock prices are called:
What is the name of the central bank of the United States?
the Federal Banking System
the Federal Money System
the Federal Reserve System
Inflation is characterized by a rise in prices. It causes your dollars to be worth:
The Federal Reserve uses interest rates to control both business and personal spending. When they raise interest rates, spending tends to go:
through the roof
When a company reports _____profits, the public loses confidence in the company.
Which of the following tend to have a strong negative effect on the stock market?
high oil prices
high clothing prices
low car prices
How do investors react during times of political or social upheaval such as war?
They spend their money.
They save their money.
They invest their money in the stock market.
The terms bull and bear market describe:
short-term trends in the farmer's market
long-term trends in the stock market
long-term trends in the supermarket
A bull market is a _____ market.
A bear market is a _____market.
The worst bear market in United States history is also known as:
the Great Bear Market
the Worst Bear Market
the Great Depression
How many times have bear markets appeared during the history of the United States stock market?
The best strategy for making money in a bull market is:
Buy low, sell high.
Buy high, sell low.
Buy at any price.
A short sell is a stock trade that involves _____ stock you don't own.
Interest rates on _____ tend to rise during bear markets.
United States Treasury bonds
Ugandan Treasury bonds
Mexican Treasury bonds
Which type of stocks don't fluctuate much even in a bear market?
Stock markets _____ rise over the long term.
What may be the smartest way to invest in the stock market?
Always invest in a bull market.
Never invest in bear market.
Invest in strong businesses with growth potential.