Which of the Following Occurs When Traders Start Moving as a Herd

question 2

Multiple Choice

Which of the following occurs when traders start moving as a herd in the same direction at the same time?

• A) Fisher effect
• B) Bandwagon effect
• C) Arbitrage
• D) Decoupling of markets

---

Definitions:

Scoria Cones

Volcanic features formed from the accumulation of small, porous volcanic rocks (scoria) around a vent, resulting in a cone-shaped hill.

Bulldozing

A process involving the forceful pushing, scouring, or removal of earth, materials, or obstacles using heavy machinery or natural forces, such as glaciers.

Air Quality

A measure of the amount of pollutants in the air, reflecting how clean or polluted the air is.

Composite Volcano

A type of volcano built from alternating layers of lava flows, volcanic ash, cinders, blocks, and bombs, typically steep-sided and explosive.