Banking Awareness Quiz – Set 55

Hello Aspirants,
Welcome to Banking Awareness Quiz in AffairsCloud.com. Here we are creating quiz covering important questions which are common for all the bank exams and other competitive exams.

1. _______ is a financial market in which share prices are rising or expected to rise.
   A. Bear Market
   B. Bull Market
   C. Pig Market
   D. Chicken Market
   
   Answer & Explanation

   B. Bull Market
   Explanation:
   A bull market is a financial market of a group of securities in which prices are rising or are expected to rise. It means the economy is growing. The term “bull market” is most often used to refer to the stock market, but can be applied to anything that is traded, such as bonds, currencies and commodities.
   
   
2. _______ is a financial market in which the economy is weakened or expected to weaken.
   A. Bear Market
   B. Bull Market
   C. Pig Market
   D. Chicken Market
   
   Answer & Explanation

   A. Bear Market
   Explanation:
   A bear market is a period of several months or years during which securities prices consistently fall. A bear market is the opposite to a bull. The term bull market is most often used in reference to the stock market, but it can also describe specific sectors such as real estate, bond or foreign exchange.
   
   
3. ___________ refers to the investors those who are impatient, greedy and emotional towards their investments and only think of themselves.
   A. Bear Market
   B. Bull Market
   C. Pig Market
   D. Chicken Market
   
   Answer & Explanation

   C. Pig Market
   Explanation:
   A Pig Market is a high risk big score position. Pigs refers to the investors those who are impatient, greedy and emotional towards their investments and only think of themselves.
   
   
4. ____________ refers to the investors in the market those who are fearful of the stock market, they stick to instruments such as bonds, bank deposits or company deposits.
   A. Bear Market
   B. Bull Market
   C. Pig Market
   D. Chicken Market
   
   Answer & Explanation

   D. Chicken Market
   Explanation:
   Chickens have no specific plan and are driven by fear of losing their money. Fear overrides common sense and any plan is quickly changed if a loss occurs. They withdraw their money from the market immediately as the Market starts declining.
   
   
5. _________ is used to describe the acts of various individuals working together to manipulate the market.
   A. Bear Market
   B. Bull Market
   C. Stags
   D. Wolf Market
   
   Answer & Explanation

   D. Wolf Market
   Explanation:
   A group of investors may employ “wolf hunting” tactics to drive a company’s stock into the ground by selling the stock short.
   
   
6. An investor or speculator who subscribes to a new issue, expecting the price of the stock to rise immediately upon the start of trading is known as _______
   A. Bear Market
   B. Bull Market
   C. Stags
   D. Wolf Market
   
   Answer & Explanation

   C. Stags
   Explanation:
   In this category of market participants are not interested in a bull or bear run. They buy the shares of a company’s initial public offering, or IPO, and sell them as soon as the stock is listed and trading commences.
   
   
7. Which of the following refers temporary recovery?
   A. Bear Market
   B. Dead Cat Bounce
   C. Stags
   D. Wolf Market
   
   Answer & Explanation

   B. Dead Cat Bounce
   Explanation:
   It refers to a temporary upswing of the market in the midst of a bear run or it could refer to select stocks.
   
   
8. Which of the following term describes the investors who stick their heads in the sand during bad markets hoping that their portfolio is not severely hit?
   A. Pigs
   B. Dead Cat Bounce
   C. Chicken
   D. Ostrich
   
   Answer & Explanation

   D. Ostrich
   Explanation:
   When the Ostrich senses danger it buries its head in the sand. Similarly, investors who exhibit ostrich-like behaviour ignore negative news in the hope that their portfolio is not severely hit.
   
   
9. Who coined the term “the ostrich effect”?
   A. George Akerlof
   B. Gerard Debreu
   C. Gary Becker
   D. George Loewenstein
   
   Answer & Explanation

   D. George Loewenstein
   Explanation:
   George Freud Loewenstein is an American educator and economist.He is a leader in the fields of behavioral economics which he is also credited with co-founding and Neuroeconomics.
   
   
10. Who was known as the “Father of Economics”?
    A. Amartya Sen
    B. Karl Marx
    C. Adam Smith
    D. George Loewenstein
    
    Answer & Explanation

    C. Adam Smith
    Explanation:
    Adam Smith was a Scottish social philosopher and political economist. He wrote “The Wealth of Nations” which was considered as the first book written on economics. The book was also considered as “Bible of Capitalism”.