What do you call a market when the market is going down and people feel nervous?

Prepare for the NGPF Personal Finance – Investing Test with multiple choice questions, hints, and explanations. Boost your financial literacy and investment skills. Get exam-ready!

Multiple Choice

What do you call a market when the market is going down and people feel nervous?

Explanation:
When prices are falling broadly and investors feel nervous or pessimistic, that situation is called a bear market. It signals not just a drop in prices but a mood of risk-off sentiment that can lead to more selling. The other options don’t fit: an asset class is a category of investments, a bond fund is a type of investment product, and a bull market describes rising prices and optimism, not decline and worry. A short-term drop might be a correction, but the description given points to a bear market.

When prices are falling broadly and investors feel nervous or pessimistic, that situation is called a bear market. It signals not just a drop in prices but a mood of risk-off sentiment that can lead to more selling. The other options don’t fit: an asset class is a category of investments, a bond fund is a type of investment product, and a bull market describes rising prices and optimism, not decline and worry. A short-term drop might be a correction, but the description given points to a bear market.

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