Study Guide for Technical Analysis Explained Fifth Edition, 5th Edition

2

FINANCIAL MARKETS AND THE BUSINESS CYCLE

Questions

Subjects to Be Covered

The chronological relationship between the financial markets and the business cycle

When they peak and trough in the cycle

Understanding the significance of the leads and lags

The six stages

Double cycles

The role of technical analysis

1. Trends in financial markets are:

A. Determined by investors’ expectations of movements in the economy

B. The effect those changes are likely to have on the price of the asset in which a specific financial market deals

C. The psychological attitude of investors to these fundamental factors

D. All of the above

2. Which is the correct chronological sequence for peaks and troughs in the financial markets over the course of the business cycle? ...