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Market trend - Quiz
Contributed by: Forster
  • 1. What determines the price of assets such as stocks?
A) Interest rates
B) Government regulations
C) Company earnings
D) Supply and demand
  • 2. What happens during a surge in demand for an asset?
A) Prices remain stable
B) Demand decreases
C) Sellers reduce their prices
D) Buyers are willing to pay higher prices
  • 3. What is the effect of a surge in supply on asset prices?
A) Prices remain stable
B) Prices tend to decrease
C) Demand increases
D) Prices tend to increase
  • 4. What influences the prices of asset types when investors reallocate their investments?
A) The company's earnings
B) The interest rates
C) The success of finding buyers for the assets they are selling
D) Government policies
  • 5. What is the ideal strategy for investors in terms of market timing?
A) Buy high and sell low
B) Buy low and sell high
C) Short selling
D) Buy and hold
  • 6. What strategy do contrarian investors and traders employ?
A) Fading investors' actions
B) Technical analysis
C) Following market trends
D) Fundamental analysis
  • 7. What is a period called when most investors are selling stocks?
A) Recession
B) Expansion
C) Distribution
D) Accumulation
  • 8. What is a period called when most investors are buying stocks?
A) Accumulation
B) Expansion
C) Distribution
D) Recession
  • 9. What is the typical effect of a decrease in price on supply and demand?
A) More supply and more demand
B) Less supply and less demand
C) Less supply and more demand
D) More supply and less demand
  • 10. What is the common mistake made by investors regarding stock prices?
A) Buying high in euphoria and selling low in panic
B) Buying low and selling high
C) Holding stocks indefinitely
D) Diversifying their portfolio
  • 11. What phenomenon occurs when an increase in price leads to an increase in demand?
A) Stability in prices
B) Disruption of the expected negative feedback loop
C) Decrease in demand
D) Increase in supply
  • 12. What is market sentiment considered as?
A) A coincident indicator
B) A lagging indicator
C) A contrarian stock market indicator
D) A leading indicator
  • 13. What does a close-to-historic-low Bull-Bear spread signal?
A) A market crash
B) A market top
C) A potential market bottom
D) A stable market
  • 14. What does an extreme high in bullish sentiment and an extreme low in bearish sentiment suggest?
A) A market crash
B) A market top or an imminent occurrence
C) A stable market
D) A market bottom
  • 15. What does the AAII sentiment indicator suggest when it reads minus 15% or below?
A) The majority of the decline has already occurred
B) The market is about to rise
C) The market is stable
D) The market is about to crash
  • 16. Which ratio is used as a sentiment indicator?
A) The debt/equity ratio
B) The put/call ratio
C) The price/earnings ratio
D) The current ratio
  • 17. Which period marked the start of the Great Depression in the U.S. stock market?
A) 1953–1957
B) 1993–1997
C) 1925–1929
D) 2000–2001
  • 18. What index is used as a key measure of market volatility?
A) NASDAQ Volatility Index
B) Cboe Volatility Index (VIX)
C) Dow Jones Volatility Index
D) S&P Volatility Index
  • 19. What is the average duration of a bear market from 1926 to 2014?
A) 24 months
B) 13 months
C) 6 months
D) 18 months
  • 20. What was the average cumulative loss during a bear market from 1926 to 2014?
A) 50%
B) 20%
C) 30%
D) 40%
  • 21. What was the percentage loss of the Dow Jones Industrial Average during the Wall Street Crash of 1929?
A) 50%
B) 60%
C) 89%
D) 70%
  • 22. What event caused a bear market in early 2020?
A) 2002 stock market downturn
B) COVID-19 pandemic
C) 2000 dot-com bubble
D) 2008 financial crisis
  • 23. What was the percentage decline of the S&P 500 Index in April 2025?
A) Between 10% and 15%
B) Under 10%
C) Exactly 15%
D) Over 20%
  • 24. What was the duration of the bear market from 1937 to 1942?
A) 3 years
B) 5 years
C) 4 years
D) 7 years
  • 25. What was the duration of the bear market during the 1970s energy crisis?
A) Approximately 9 years
B) 12 years
C) 7 years
D) 5 years
  • 26. What was the duration of the bear market in 2020 due to COVID-19?
A) 2 years
B) 1 year
C) A few months
D) 6 months
  • 27. What was the average cumulative total return of a bull market from 1926 to 2014?
A) The cumulative total return averaged 200%.
B) The cumulative total return averaged 458%.
C) The cumulative total return averaged 300%.
D) The cumulative total return averaged 500%.
  • 28. Who is quoted advising to buy when there is 'blood in the streets'?
A) William O'Neil.
B) Baron Rothschild.
C) Benjamin Graham.
D) Warren Buffett.
  • 29. What was the DJIA closing value at the market bottom on October 19, 1987?
A) 7,286.27.
B) 1,565.
C) 6,440.08.
D) 1,738.74.
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