Ace the Canadian Securities Course 2025 - Rock the CSC Practice Exam!

Question: 1 / 400

What economic conditions characterize an "Expansion" phase?

High unemployment rates

Declining stock market

Rising market activity

An "Expansion" phase is characterized by strong economic growth, which typically leads to rising market activity. This is because consumer spending increases, businesses are making more profits, and overall economic activity is on the rise. The other options are incorrect because they do not align with the positive economic conditions associated with an expansion phase. High unemployment rates and declining stock market typically occur during a recession or downturn, and decreasing inventory may suggest a slowdown in consumer demand.

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Decreasing inventory

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