A stock that follows the business cycle of advances and declines in the economy is called a(n) ____________ stock.
A) defensive
B) cyclical
C) growth
D) income
E) blue-chip

Question

Quizplus · Accepted Answer

Cyclical stocks are highly influenced by the business cycle and tend to rise and fall in tandem with the overall economy. Defensive stocks, on the other hand, are less sensitive to economic fluctuations and are often considered safe havens during economic downturns. Growth stocks focus on long-term growth potential, while income stocks prioritize dividend payments. Blue-chip stocks generally refer to well-established companies with a history of reliable performance.

A Stock That Follows the Business Cycle of Advances and Declines