Which Two of the Following Are Possible Explanations for the Situation

question 48

Multiple Choice

Which two of the following are possible explanations for the situation where a 30-day moving average intersects a 300-day moving average assuming that the 30-day average is upward sloping and the 300-day average in downward sloping?
I. the long-term trend of the market is getting ready to turn bullish
II. the long-term trend of the market is getting ready to turn bearish
III. the market will be bullish in the short-run but bearish in the long-run
IV. the market will be bearish in the short-run but bullish in the long-run

• A) I and III only
• B) I and IV only
• C) II and III only
• D) II and IV only
• E) None of the above

---

Definitions:

Dodd-Frank Act

A comprehensive financial reform legislation enacted in 2010 in the United States, aimed at reducing risks in the financial system and protecting consumers.

Antifraud Provisions

Regulatory measures designed to protect investors by preventing fraudulent trading practices and securities fraud.

Securities Acts

Collectively refers to federal laws, such as the Securities Act of 1933 and the Securities Exchange Act of 1934, regulating the securities industry in the U.S.

Documentary Letter of Credit

A bank's promise to pay the seller on behalf of the buyer upon receipt of specified documents, typically used in international trade.