Exam 20: Global Economic Activity and Industry Analysis

Assume there are 329 million people in the United States, 153 million of which make up the labor force. If 9 million are unemployed, what is the unemployment rate?

You are planning to invest $150,000 in Hong Kong. If your Hong Kong investment gains 5.0% while the exchange rate moves from 7.77 Hong Kong dollars (HK$)per U.S. dollar to 7.80 per dollar over the period, what is your total return on this investment?

Which of the following describes the "M2" money supply?

If the number of Euros required to buy $1 (USD)increases then the Euro has ________ versus the U.S. dollar.

If the nominal GDP was reported at $1,305.80 billion and inflation was 2.5%, what is the level of real GDP for the period?

If the Federal Reserve injects $150 billion into the financial system and the money supply increases by a maximum of $750 billion, what must the reserve requirement be?

As a U.S. investor, you decide to invest $75,000 in Switzerland. You do so at a starting exchange rate of .97 CHF/$. Your Swiss investment gains 9%, and the ending exchange rate is .95 CHF/$. What is your total return on this investment?

If the nominal GDP was reported at $196.3 billion and real GDP was reported at $193.4 billion, what was the inflation rate for the period?

The relationship between inflation and real GDP is ________.

Government determination of tax rates and spending policies is called ________.

Assume that the Federal Reserve injects $45 billion into the financial system. If the money supply increases by a maximum of $300 billion, what must the reserve requirement be?

A breakdown of the S&P 500 into major sectors specifying the relative market weight of components and indicating the direction of movement of the prices of the underlying stocks is called a ________.

Assume that the Federal Reserve injects $3.2 billion into the financial system. If the reserve requirement is 13%, what is the maximum increase in money supply (in billions)?

Which of the following reflects the value of economic output adjusted to remove the effects of inflation?

A common rule of thumb on Wall Street says that the sum of the inflation rate plus the market price-earnings ratio equals ________.

Which of the following is NOT a primary goal of the Federal Reserve?

If the nominal GDP was reported at $1,239.29 billion and inflation was 2.1%, what is the level of real GDP for the period?