Capital MarketsQuestion 342 of 398
Which sequence correctly lists the four phases of the business cycle?
a.Peak, expansion, trough, contraction
b.Contraction, trough, peak, expansion
c.Trough, contraction, expansion, peak
d.Expansion, peak, contraction, trough
Explanation
The business cycle typically moves through expansion, peak, contraction, and trough before beginning a new expansion. Understanding these phases helps investors anticipate how different asset classes may perform as the economy shifts.
Practice all 398 questions free — no signup required.
Related questions on this topic
- A normal (positive) yield curve is best described as one in which:
- An inverted yield curve, in which short-term yields are higher than long-term yields, is often viewed by economists as a potential signal of:
- During the expansion (recovery) phase of the business cycle, which of the following is typically observed?
- Inflation is best defined as:
- To fight high inflation, the Federal Reserve would most likely pursue which policy?
- In a rights offering, a company gives its existing shareholders the opportunity to:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against FINRA Securities Industry Essentials (SIE) Exam · How we review