22
practice examMultiple Choice

Practice Exam

Question 22 • Mathematics for Data and Financial Literacy

What might a falling stock index, such as the S&P 500, indicate?

Answer
A
The stock prices of major companies are increasing, signaling economic growth.
B
Valuations for stocks are in line with investor expectations.
C
Investors are confident in the economy and are buying more stock shares.
D
The stock prices of major companies are declining, signaling economic uncertainty.

Explanation

A falling stock index means that the share prices of the companies it tracks are declining overall. This can signal that investors are worried about economic conditions or expect uncertainty ahead. Therefore, the best answer is D: the stock prices of major companies are declining, signaling economic uncertainty.

AI-written and checked against the verified answer.

Previous
Next