Question
Stock markets ________ at the news of the coup.
The correct answer is
plunged
Stock Market Reaction Vocabulary
The question asks for the correct verb to describe how stock markets reacted to negative news, specifically the news of a coup.
Analyzing Options
- Poised: Means ready or prepared. Stock markets aren't typically described as 'poised' to react to sudden negative news; they react immediately.
- Plugged: Means sealed or blocked. This is irrelevant to market movement.
- Probed: Means investigated. While markets might be analyzed after an event, they don't 'probe' at news.
- Plunged: Means fell suddenly and dramatically. This accurately describes a sharp, negative reaction in the stock market following significant bad news like a coup.
Conclusion
Negative events like a coup often cause significant fear and uncertainty, leading to a rapid sell-off. Therefore, plunged is the most fitting word to describe the stock market's reaction.
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