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What was the primary reason for the global stock market decline in early 2022?

Practice Questions

Q1
What was the primary reason for the global stock market decline in early 2022?
  1. COVID-19 resurgence
  2. Russia-Ukraine conflict
  3. US-China trade tensions
  4. Interest rate hikes

Questions & Step-by-Step Solutions

What was the primary reason for the global stock market decline in early 2022?
  • Step 1: In February 2022, Russia started a conflict by invading Ukraine.
  • Step 2: This invasion created a lot of uncertainty in the world.
  • Step 3: Investors became worried about the impact of the conflict on the economy.
  • Step 4: As a result, many people started selling their stocks.
  • Step 5: The selling of stocks caused the prices to drop, leading to a decline in global stock markets.
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