Which term describes a market condition where stock prices are generally rising?

• A. Bear Market
• B. Bull Market
• C. Liquidity
• D. Inflation

Answer: (B)

A bull market describes a period when stock prices are generally rising. This usually happens when investors are optimistic about future economic growth, corporate earnings are improving, and demand for stocks outpaces supply. In this environment, confidence leads to more buying, pushing prices higher and sometimes creating a positive feedback loop as rising prices attract even more buyers. The other terms describe different situations: a bear market is when prices are falling, liquidity is about how easily assets can be bought or sold, and inflation is the general rise in prices across the economy and doesn’t by itself describe the direction of stock prices.