ECONOMICS (CBSE/UGC NET)

ECONOMICS

BUSINESS CYCLES

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Read the following headline and choose the condition that correspond with the business cycle.The DOW Jones industrial average reaches an all-time high.
A
Peak
B
Contractionary
C
Trough
D
Growth
Explanation: 

Detailed explanation-1: -The DJIA was created by Charles Dow in 1896 and has been published continuously since then. In order to be included in the DJIA, a company must meet certain criteria, such as being headquartered in the United States, being listed on the New York Stock Exchange, and having a minimum market capitalization.

Detailed explanation-2: -The Dow’s all-time high at market close stands at 36, 799.65 points-reached on Jan. 4, 2022. The DJIA is one of the most regularly followed equity indexes, tracking 30 large-cap, well-known companies that trade on U.S. stock exchanges.

Detailed explanation-3: -The three trends are primary, secondary, and minor. The primary trend is the long-term trend, called a bull or bear. Secondary trends are smaller trends, such as a market correction. Finally, minor trends are day-to-day price fluctuations in the market.

Detailed explanation-4: -Dow Theory suggests the markets are made up of three distinct phases, which are self-repeating. These are called the Accumulation phase, the Markup phase, and the Distribution phase. The Accumulation phase usually occurs right after a steep sell-off in the market.

There is 1 question to complete.