Which of the following tends to signal that stock prices are likely to rise in the future?
I. Employment increases after several months of recession.
II. Interest rates are low compared to the recent past.
III. Major market indexes have just reached record highs.
IV. Housing starts increase after several months of decline.
A) I and II only
B) II and III only
C) I, II and IV only
D) I, II, III and IV

Question

Quizplus · Accepted Answer

I, II, and IV are indicators of economic improvement or conditions that can lead to increased consumer and business spending, which can drive stock prices up. III does not necessarily indicate future rises; reaching record highs could also signal a peak before a potential decline.

Which of the Following Tends to Signal That Stock Prices