Question

The usual reaction of the stock market to a political crisis is _____.

• A. For the Stock Exchange to close for a week
• B. A rise in stock prices and an increase in buying
• C. The stoppage of payment on government bonds
• D. A fall in stock prices and an increase in selling
• E. An increase in foreign investment

Answer 1

The correct option is D A fall in stock prices and an increase in selling

Political crisis leads to increase in selling and fall of stock prices.