Question 1

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

Accepted Answer

A)  10 
B)  15 
C)  20 
D)  25 
E)  30 
A)  10 
B)  15 
C)  20 
D)  25 
E)  30 C

Question 2

The short-term rate at which banks lend to each other is called the ________.

Accepted Answer

A)  Fed Funds Rate 
B)  Federal Reserve Rate 
C)  Discount Rate 
D)  Federal Loan Rate 
E)  Reserve Loan Rate 
A)  Fed Funds Rate 
B)  Federal Reserve Rate 
C)  Discount Rate 
D)  Federal Loan Rate 
E)  Reserve Loan Rate A

Question 3

The relationship between inflation and real GDP is ________.

Accepted Answer

A)  direct 
B)  positive 
C)  negative 
D)  non-existent 
E)  inverse 
A)  direct 
B)  positive 
C)  negative 
D)  non-existent 
E)  inverse E

Question 4

Which of the following is NOT considered a lagging economic indicator?

Accepted Answer

A)  prime rate 
B)  change in CPI for services 
C)  industrial production 
D)  commercial and industrial loans 
A)  prime rate 
B)  change in CPI for services 
C)  industrial production 
D)  commercial and industrial loans

Question 5

If government expenditures exceed tax revenue the resulting shortfall is termed a ________.

Accepted Answer

A)  budget shortfall 
B)  taxing deficiency 
C)  budget deficit 
D)  revenue shortfall 
E)  revenue deficiency 
A)  budget shortfall 
B)  taxing deficiency 
C)  budget deficit 
D)  revenue shortfall 
E)  revenue deficiency

Question 6

If the nominal GDP was reported at $1,351.90 billion and inflation was 3.8%,what is the level of real GDP for the period?

Accepted Answer

A)  $1,289.54 
B)  $1,302.41 
C)  $1,344.92 
D)  $1,385.01 
E)  $1,402.45 
A)  $1,289.54 
B)  $1,302.41 
C)  $1,344.92 
D)  $1,385.01 
E)  $1,402.45

Question 7

Economic metrics that tend to rise and fall in advance of the economy are called ________ indicators.

Accepted Answer

A)  predictive 
B)  forecast 
C)  leading 
D)  coincident 
E)  cyclical 
A)  predictive 
B)  forecast 
C)  leading 
D)  coincident 
E)  cyclical

Question 8

An analyst gathered the following year-end price level data for an economy.What is the economy's annual inflation rate for 2016?

Accepted Answer

A)  2.22% 
B)  2.42% 
C)  2.68% 
D)  2.87% 
E)  2.93% 
A)  2.22% 
B)  2.42% 
C)  2.68% 
D)  2.87% 
E)  2.93%

Question 9

The U.S.makes up approximately what percent of the global equity market capitalization?

Accepted Answer

A)  20% 
B)  25% 
C)  30% 
D)  35% 
E)  40% 
A)  20% 
B)  25% 
C)  30% 
D)  35% 
E)  40%

Question 10

If the nominal GDP was reported at $141.8 billion and real GDP was reported at $138.4 billion,what was the inflation rate for the period?

Accepted Answer

A)  1.54% 
B)  1.92% 
C)  2.46% 
D)  2.67% 
E)  2.81% 
A)  1.54% 
B)  1.92% 
C)  2.46% 
D)  2.67% 
E)  2.81%

Question 11

Assume there are 450 million people in the United States,165 million of which make up the labor force.If 18 million are unemployed,what is the unemployment rate?

Accepted Answer

A)  8.35% 
B)  9.58% 
C)  10.91% 
D)  11.05% 
E)  11.74% 
A)  8.35% 
B)  9.58% 
C)  10.91% 
D)  11.05% 
E)  11.74%

Question 12

Which of the following is NOT considered in the first filter or phase of top-down analysis?

Accepted Answer

A)  Domestic spending 
B)  Fiscal policy 
C)  Business cycles 
D)  Monetary Policy 
E)  Economic indicators 
A)  Domestic spending 
B)  Fiscal policy 
C)  Business cycles 
D)  Monetary Policy 
E)  Economic indicators

Question 13

Assume the CPI increases from 125.9 to 126.4 over the period.What is the inflation rate implied by this CPI change?

Accepted Answer

A)  0.10% 
B)  0.20% 
C)  0.30% 
D)  0.40% 
E)  0.50% 
A)  0.10% 
B)  0.20% 
C)  0.30% 
D)  0.40% 
E)  0.50%

Question 14

Which of the following was the largest sector in the S&P as of April 2012?

Accepted Answer

A)  consumer discretionary 
B)  energy 
C)  health care 
D)  technology 
E)  financials 
A)  consumer discretionary 
B)  energy 
C)  health care 
D)  technology 
E)  financials

Question 15

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

Accepted Answer

A)  keep inflation in check 
B)  encourage consumer spending 
C)  generate full employment 
D)  moderate the business cycle 
E)  help achieve long-term economic growth 
A)  keep inflation in check 
B)  encourage consumer spending 
C)  generate full employment 
D)  moderate the business cycle 
E)  help achieve long-term economic growth

Question 16

Which of the following describes the "M2" Money Supply?

Accepted Answer

A)  M1 plus time deposits, savings accounts and money markets 
B)  M1 plus time deposits and savings accounts 
C)  M1 plus time deposits and money markets 
D)  M1 plus money markets 
E)  M1 plus checking and time deposits 
A)  M1 plus time deposits, savings accounts and money markets 
B)  M1 plus time deposits and savings accounts 
C)  M1 plus time deposits and money markets 
D)  M1 plus money markets 
E)  M1 plus checking and time deposits

Question 17

Which index measures the average prices paid by urban consumers for a basket of consumer goods and services?

Accepted Answer

A)  Urban Inflation Index (UII) 
B)  Price Inflation Index (PII) 
C)  Urban Consumer Index (UCI) 
D)  Consumer Inflation Index (CII) 
E)  Consumer Price Index (CPI) 
A)  Urban Inflation Index (UII) 
B)  Price Inflation Index (PII) 
C)  Urban Consumer Index (UCI) 
D)  Consumer Inflation Index (CII) 
E)  Consumer Price Index (CPI)

Question 18

All nonmilitary people employed and unemployed,but seeking employment make up the ________.

Accepted Answer

A)  labor force 
B)  labor population 
C)  employable population 
D)  work force participants 
E)  employable work force 
A)  labor force 
B)  labor population 
C)  employable population 
D)  work force participants 
E)  employable work force

Question 19

The interest rate the Federal Reserve charges its member banks on loans is called:

Accepted Answer

A)  Fed Funds Rate 
B)  Federal Reserve Rate 
C)  Discount Rate 
D)  Federal Loan Rate 
E)  Reserve Loan Rate 
A)  Fed Funds Rate 
B)  Federal Reserve Rate 
C)  Discount Rate 
D)  Federal Loan Rate 
E)  Reserve Loan Rate

Question 20

A breakdown of the S&P 500 into major sectors specifying the relative market weight of components is called a ________.

Accepted Answer

A)  heat map 
B)  sector chart 
C)  component map 
D)  market capitalization chart 
E)  sector component map 
A)  heat map 
B)  sector chart 
C)  component map 
D)  market capitalization chart 
E)  sector component map

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

The short-term rate at which banks lend to each other is called the ________.

The relationship between inflation and real GDP is ________.

Which of the following is NOT considered a lagging economic indicator?

If government expenditures exceed tax revenue the resulting shortfall is termed a ________.

If the nominal GDP was reported at $1,351.90 billion and inflation was 3.8%,what is the level of real GDP for the period?

Economic metrics that tend to rise and fall in advance of the economy are called ________ indicators.

An analyst gathered the following year-end price level data for an economy.What is the economy's annual inflation rate for 2016?

The U.S.makes up approximately what percent of the global equity market capitalization?

If the nominal GDP was reported at $141.8 billion and real GDP was reported at $138.4 billion,what was the inflation rate for the period?

Assume there are 450 million people in the United States,165 million of which make up the labor force.If 18 million are unemployed,what is the unemployment rate?

Which of the following is NOT considered in the first filter or phase of top-down analysis?

Assume the CPI increases from 125.9 to 126.4 over the period.What is the inflation rate implied by this CPI change?

Which of the following was the largest sector in the S&P as of April 2012?

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

Which of the following describes the "M2" Money Supply?

Which index measures the average prices paid by urban consumers for a basket of consumer goods and services?

All nonmilitary people employed and unemployed,but seeking employment make up the ________.

The interest rate the Federal Reserve charges its member banks on loans is called:

A breakdown of the S&P 500 into major sectors specifying the relative market weight of components is called a ________.

A Brief History of Risk and Return

The Investment Process

Overview of Security Types

Mutual Funds and Other Investment Companies

The Stock Market

Common Stock Valuation

Stock Price Behavior and Market Efficiency

Behavioral Finance and the Psychology of Investing

Interest Rates

Bond Prices and Yields

Diversification and Risky Asset Allocation

Return,Risk,and the Security Market Line

Performance Evaluation and Risk Management

Futures Contracts

Stock Options

Option Valuation

Projecting Cash Flow and Earnings

Corporate and Government Bonds

Mortgage-Backed Securities

Filters

Exam 19: Global Economic Activity and Industry Analysis

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

The short-term rate at which banks lend to each other is called the ________.

The relationship between inflation and real GDP is ________.

Which of the following is NOT considered a lagging economic indicator?

If government expenditures exceed tax revenue the resulting shortfall is termed a ________.

If the nominal GDP was reported at $1,351.90 billion and inflation was 3.8%,what is the level of real GDP for the period?

Economic metrics that tend to rise and fall in advance of the economy are called ________ indicators.

An analyst gathered the following year-end price level data for an economy.What is the economy's annual inflation rate for 2016?

The U.S.makes up approximately what percent of the global equity market capitalization?

If the nominal GDP was reported at $141.8 billion and real GDP was reported at $138.4 billion,what was the inflation rate for the period?

Assume there are 450 million people in the United States,165 million of which make up the labor force.If 18 million are unemployed,what is the unemployment rate?

Which of the following is NOT considered in the first filter or phase of top-down analysis?

Assume the CPI increases from 125.9 to 126.4 over the period.What is the inflation rate implied by this CPI change?

Which of the following was the largest sector in the S&P as of April 2012?

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

Which of the following describes the "M2" Money Supply?

Which index measures the average prices paid by urban consumers for a basket of consumer goods and services?

All nonmilitary people employed and unemployed,but seeking employment make up the ________.

The interest rate the Federal Reserve charges its member banks on loans is called:

A breakdown of the S&P 500 into major sectors specifying the relative market weight of components is called a ________.

A Brief History of Risk and Return

The Investment Process

Overview of Security Types

Mutual Funds and Other Investment Companies

The Stock Market

Common Stock Valuation

Stock Price Behavior and Market Efficiency

Behavioral Finance and the Psychology of Investing

Interest Rates

Bond Prices and Yields

Diversification and Risky Asset Allocation

Return,Risk,and the Security Market Line

Performance Evaluation and Risk Management

Futures Contracts

Stock Options

Option Valuation

Projecting Cash Flow and Earnings

Corporate and Government Bonds

Mortgage-Backed Securities

Filters