When Investors Are Optimistic About the Overall Economy and Buy

question 133

Multiple Choice

When investors are optimistic about the overall economy and buy stocks, it is known as a(n) ____________ market.

• A)book
• B)bear
• C)bull
• D)equity
• E)declining

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Definitions:

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future.

Forward Contract

A non-standardized contract between two parties to buy or sell an asset at a specified future time at a price agreed upon today.

Settlement Date

The date on which a trade or transaction must be finalized with the transfer of the asset and payment completed.

Risk Of Default

The possibility or likelihood that a borrower will not be able to meet debt obligations, leading to financial losses for the lender.