Economic Indicators
A decline in GDP must last at least how many quarters to be considered a recession?
Recession = 2 consecutive quarters of negative GDP growth.
Complete Analysis & Legal Rationale
A recession is commonly defined as two consecutive quarters of negative GDP growth. This rule of thumb is widely used, although the official determination by the NBER considers additional factors.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
One quarter of decline is not sufficient to declare a recession.
Matches the verified teaching point in the explanation.
Three quarters exceeds the minimum requirement.
Four quarters would be a prolonged recession; two is the minimum.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA Series 7 outline.