Question

Why is a stock exchange often referred to as a "mirror of the economy"?

a.

It reflects the policies of the government

b.

It measures the economic condition of a country

c.

It directly influences economic policies

d.

It mirrors the performance of individual companies

Answer: (b).It measures the economic condition of a country Explanation:A stock exchange is considered a reliable barometer to measure the economic condition of a country.

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Q. Why is a stock exchange often referred to as a "mirror of the economy"?

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