The Economic Cycle and Stock Market Quiz
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Questions and Answers

Which factor plays a large role in determining stock prices?

  • Economic cycle
  • Sector rotation
  • Interest rates
  • Corporate profits (correct)

During which stage of the economic cycle do investors usually rotate into the Financial sector?

  • Emerging from a recession (correct)
  • Recession
  • Growth
  • Tail end of a recession

Which sector is typically sensitive early in the economic cycle?

  • Financials
  • Technology (correct)
  • Consumer Cyclical
  • Automobiles

During the growth stage of the economic cycle, investors tend to rotate into which sectors?

<p>Transportation, Industrials, Basic Materials, Energy (B)</p> Signup and view all the answers

Which sectors are considered defensive sectors during a recession?

<p>Consumer Staples, Utilities, Healthcare (B)</p> Signup and view all the answers

What are some examples of goods and services supplied by companies in defensive sectors?

<p>Food, beverages, and household items (C)</p> Signup and view all the answers

When might investors rotate into the Financials sector?

<p>Toward the tail end of a recession (D)</p> Signup and view all the answers

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