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Question

Arrange the different parts in the correct sequence to form a meaningful sentence/paragraph.
P : When the future date arrives, the bear expects
to buy in at a lower price to deliver the stock
that had been sold under the future contract
at a higher price.
Q : A market in which prices are falling or are
expected to fall is called by economists a bear
market.
R : Likewise, the term bear can be applied to a
person who expects stock prices to fall and
sells stock that he or she does not have for
delivery at a future date.
S : It is a designation commonly used in securities
markets and commodity markets and is the
opposite of a bull market.

A
Q S R P
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B
Q R P S
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C
Q P R S
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D
P R Q S
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Solution

The correct option is A Q S R P

The first statement in the sequence should be the one that introduces a new topic. It should not be a continuation or extension of a topic.

Q is first in the sequence: Q is the only phrase that introduces a new topic. It starts a discussion on bear market and gives it definition.

Q is followed by S: S continues Q's point. It tells us where the term 'bear market' is used.

S is followed by R: R is an extension of S. It tells us another possible place where the term can be employed. It says that bear can also be applied to stocks sold at a future date.

R is followed by P: P explains the point introduced by R. It tells us in detail about the application of bear mentioned in R.

Thus, the correct sequence is Q S R P. Hence, A is the correct option.


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