#1
What defines a bear market?
A period of declining stock prices
ExplanationPeriod of stock price decline.
#2
Which of the following is a characteristic of a bear market?
High levels of unemployment
ExplanationAssociated with high unemployment.
#3
What is the opposite of a bear market?
Bull market
ExplanationOpposite is bull market.
#4
Which of the following is NOT a characteristic of a bear market?
Rising corporate earnings
ExplanationNot associated with rising earnings.
#5
Which factor is less likely to influence the onset of a bear market?
Strong corporate earnings
ExplanationStrong earnings unlikely trigger.
#6
What typically happens to corporate profits during a bear market?
They tend to decline
ExplanationCorporate profits decline.
#7
Which asset class often performs well during bear markets?
Bonds
ExplanationBonds perform well.
#8
What is the typical duration of a bear market?
1 to 2 years
ExplanationLasts 1-2 years generally.
#9
Which factor often triggers a bear market?
Geopolitical instability
ExplanationGeopolitical instability triggers.
#10
What is the historical origin of the term 'bear market'?
Derived from the bear-like behavior of investors
ExplanationOriginated from bear-like behavior.
#11
During a bear market, which sector is generally considered defensive?
Utilities
ExplanationUtilities are defensive.
#12
Which famous investor is known for saying 'The stock market is filled with individuals who know the price of everything, but the value of nothing'?
Benjamin Graham
ExplanationQuote by Benjamin Graham.
#13
During a bear market, what investment strategy may be prudent for investors?
Holding onto cash
ExplanationHolding cash is wise.
#14
What is a 'dead cat bounce' in the context of a bear market?
A temporary recovery followed by a return to declining prices
ExplanationTemporary recovery followed by decline.
#15
How do central banks typically respond to bear markets?
By reducing interest rates
ExplanationCentral banks cut rates.
#16
What is the psychological impact of a bear market on investors?
Heightened fear and pessimism
ExplanationFear and pessimism rise.
#17
What is a 'circuit breaker' in the context of financial markets?
A trading halt triggered by a severe market decline
ExplanationTrading halt due to severe decline.
#18
What is the typical behavior of institutional investors during a bear market?
Increased selling
ExplanationInstitutional selling increases.
#19
In which year did the most recent bear market prior to 2024 occur?
2020
ExplanationMost recent was in 2020.