When the 50-Day Moving Average Crosses the 200-Day Moving Average

question 79

Multiple Choice

When the 50-day moving average crosses the 200-day moving average from below on good volume

• A) This would be a bearish indicator because it signals a change to a negative trend.
• B) This would be a bullish indicator because it signals a change to a negative trend.
• C) This would be a bullish indicator because it signals a change to a positive trend.
• D) This would be a bearish indicator because it signals a change to a positive trend.
• E) None of the above.

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Definitions:

Junk Bond

A high-yield bond with a lower credit rating than investment-grade bonds, reflecting higher risk.

Annual Interest

Interest calculated or paid once per year on a loan or investment, based on the initial principal or on the amount outstanding.

Call Provision

A provision in a bond or similar fixed-income instrument that permits the issuer to pay off the principal ahead of its maturity date.

Issuer

An entity that develops, registers, and sells securities for the purpose of financing its operations.