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The Ultimate Stock Market Trends Quiz
by Staff
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?

  • inflation
  • energy prices
  • both of the above

Sudden rises or drops in stock prices are called:

  • strikes
  • spikes
  • spokes

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:

  • less
  • more
  • the same

The Federal Reserve uses interest rates to control both business and personal spending. When they raise interest rates, spending tends to go:

  • down
  • up
  • through the roof

When a company reports _____profits, the public loses confidence in the company.

  • low
  • high
  • fantastic

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.

  • falling
  • rising
  • plummeting

A bear market is a _____market.

  • falling
  • rising
  • soaring

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?

  • zero
  • once
  • many

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.

  • buying
  • renting
  • borrowing

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?

  • defensive stocks
  • offensive stocks
  • responsive stocks

Stock markets _____ rise over the long term.

  • never
  • sometimes
  • always

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.