n NISM Certifications
XV NISM Series XV
Medium

In which phase of the economic cycle is consumer confidence typically the lowest?

Practice question from NISM XV Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Slow down

  2. B

    Recovery

  3. C

    Expansion / Boom

  4. Recession

    Correct answer

Why this is the answer

During recession, unemployment rises and incomes fall, leading to reduced spending and low consumer confidence.

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NISM XV Mock Test 2