ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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increases people’s wealth, but is unlikely to increase their willingness to spend.
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increases people’s wealth and as a result may increase their willingness to spend.
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decreases the amount of funds that business firms can raise by selling newly-issued stock.
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decreases people’s wealth, but is unlikely to increase their willingness to spend.
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Detailed explanation-1: -A bull market is the condition of a financial market in which prices are rising or are expected to rise. 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, real estate, currencies, and commodities.
Detailed explanation-2: -When stocks rise, people invested in the equity markets gain wealth. This increased wealth often leads to increased consumer spending, as consumers buy more goods and services when they’re confident they are in a financial position to do so.
Detailed explanation-3: -When Inflation Rises, Interest Rate Hikes Follow. Higher inflation by itself isn’t necessarily bad for stock prices. Rising prices boost corporate profits, especially if companies can pass on higher input costs to their customers via price hikes.
Detailed explanation-4: -The stock market is affected by many factors such as political upheaval, interest rates, current events, exchange rate fluctuations, natural calamities and much more. These factors can affect your yields, but with a clear understanding of the market, you can decide the best time to buy or sell stocks.