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