Market Mechanics Quiz

What is the effect of an increase in demand for a security with a constant supply?

What is the role of ‘market makers’ in financial markets?

Which phase in the Boom and Bust Cycle is characterized by high investor confidence and economic growth?

Range-bound markets are characterized by a lack of a clear trend in either direction.

An uptrend in technical analysis is identified by a pattern of lower highs and lower lows.

Match the following market concepts with their descriptions.

Connect these market mechanics to their definitions.

Arrange these market participants based on their potential influence on market prices, from least to most: Individual Investors, Institutional Investors, Market Makers.

Rank these events based on their typical occurrence in the Boom and Bust Cycle, starting with the boom: Economic Expansion, Fiscal Intervention, Economic Slowdown, Decrease in Investor Confidence.

How might understanding market supply and demand dynamics influence your investment strategies?