Financial Industry Regulatory Authority (FINRA) Practice Exam 2025 - Free FINRA Practice Questions and Study Guide

Question: 1 / 400

A decline in the GDP must last for at least how many quarters to be considered a recession?

1

2

A decline in the Gross Domestic Product (GDP) is traditionally recognized as a recession when it lasts for at least two consecutive quarters. This benchmark is widely accepted by economists and is often used as a standard measure, as it indicates a sustained downturn in economic activity.

A decline over a single quarter may not provide a complete representation of economic conditions, as it could be influenced by temporary factors. By requiring a two-quarter period, it allows for a clearer analysis of economic trends and reduces the likelihood of misclassifying economic fluctuations due to short-term volatility. This distinction helps policymakers, economists, and investors better gauge the health of the economy and make informed decisions based on longer-term economic conditions.

Get further explanation with Examzify DeepDiveBeta

3

4

Next Question

Report this question

Download Financial Industry Regulatory Authority (FINRA) Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy