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0.5 points
QUESTION 2
1. The study of Behavioural Economics indicates which of the following ?
a. a scientific understanding of markets in impossible because human behaviour is too complex
b. stock markets are somewhat irrational and somewhat predictable
c. stock markets are highly efficient and rational
d. bond markets are more volatile than stock markets
0.5 points
QUESTION 3
1. What is generally considered to be the root cause of the Japanese bubble of the 1990s?
a. the Central Bank of Japan cut interest rates
b. excessive foreign investment in Japanese stock
c. the Yen was at par with the US dollar
d. too many Japanese investing in American and European stock
0.5 points
QUESTION 4
1. Which of the following is NOT considered a sign that a market collapse may be about to occur ?
a. feelings that things are okay and stock prices will continue to rise
b. too many people placing money in the same type of financial asset
c. people have high levels of personal debt
d. high interest rates