24
QuizMultiple Choice

Investing — Test

Question 24 • Personal Finance

Why do investors sell during downturns?

Answer
A
Taxes increase
B
Returns increase
C
Risk decreases
D
Emotional reactions

Explanation

During a downturn, falling prices can make investors feel worried or afraid of losing more money. Those emotional reactions may lead them to sell, even when selling is not part of a long-term plan. Taxes do not necessarily increase, returns are generally falling, and risk does not decrease just because prices are down.

AI-written and checked against the verified answer.

Previous
Next