Which One of the Following Statements Related to Market Crashes

question 4

Multiple Choice

Which one of the following statements related to market crashes is correct?

• A) Financial market crashes are unique to the United States.
• B) A market crash tends to occur within a week but have effects that last many years.
• C) Once the market finally crashed in 1929, stock prices began a long period of steady increases.
• D) The market crash of 1987 occurred on a day when trading volume was light indicating there were a limited number of irrational investors involved.
• E) Actions in Washington, D.C., may have helped contribute to the market crash in 1929 but not to the 1987 crash.

---

Definitions:

Leniency

The tendency to perceive the job performance of ratees as especially good.

Gross Errors

Significant mistakes or inaccuracies that can drastically affect the outcome of a task or experiment, usually due to negligence or oversight.

Validity

The extent to which a test, measure, or research study accurately reflects or assesses the specific concept that it is intended to measure.

Recruitment

The process of finding, attracting, and selecting suitable candidates for employment to fill job vacancies within an organization.