Which best describes what a market index does? a. an index measures market performance b. an index measures economic trends c. an index measures growth d. an index measures the performance of a single stock.

A. An index measures market performance.

Step-by-step explanation:

Years ago, investors needed to analyze the overall performance of the market, so it was necessary to find the best way to know it. For this reason, the "Market index" was created. This is a method that is applied to measure the behavior of the market or, in other words, to measure the market performance. This index is then represented graphically with a curve.

The market index is used to measure market performance.

The term market index refers to an index that is used to measure market performance. It serves as a guide to potential investors in a market.

Hence, the term which best describes the market index is that it is; "An index measures market performance".

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