Which One of the Following Statements Concerning the Stock Market

question 44

Multiple Choice

Which one of the following statements concerning the stock market is correct?

• A)Leverage was one of the contributing factors of the Crash of 1929.
• B)"Black Monday" refers to October 29, 1929.
• C)Program trading is cited as the sole cause of the Crash of 1987.
• D)Generally speaking, market crashes tend to last longer than market bubbles.
• E)It took the market 10 years to recover from the Crash of 1987.

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Definitions:

Wager

An agreement between two parties where the outcome of a specified event leads to the transfer of something of value from the loser to the winner.

Binding Contract

A legal agreement between parties that is enforceable by law, requiring all signatories to fulfill their respective obligations.

Party Seeking Coverage

Refers to an individual or entity that is applying for or requesting insurance protection from an insurer.

Insurance Company

A financial institution that provides a range of insurance policies to protect individuals and businesses against risk.