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