Question 1

The labor force divided by the nonmilitary working age population equals the ________.

Accepted Answer

A)  work force participation rate 
B)  employable participation rate 
C)  labor population participation rate 
D)  labor force participation rate 
E)  participating employees rate 
A)  work force participation rate 
B)  employable participation rate 
C)  labor population participation rate 
D)  labor force participation rate 
E)  participating employees rate

Question 2

The power of a "rippling effect" of adding money to the financial system is measured by the ________.

Accepted Answer

A)  ripple ratio 
B)  money multiplier 
C)  multiplier ratio 
D)  money magnifier 
E)  magnifier ratio 
A)  ripple ratio 
B)  money multiplier 
C)  multiplier ratio 
D)  money magnifier 
E)  magnifier ratio

Question 3

The process of moving investments between sectors of the economy over time is called ________.

Accepted Answer

A)  sector stagnation 
B)  sector selection 
C)  rotational investing 
D)  sector exchange 
E)  sector swapping 
A)  sector stagnation 
B)  sector selection 
C)  rotational investing 
D)  sector exchange 
E)  sector swapping

Question 4

Suppose you want to convert U.S.dollars to Indian rupees.If you have $120,000 and the exchange rate is $0.0159 per rupee,how many rupees (in millions)will you receive in the conversion?

Accepted Answer

A)  6.28 million 
B)  6.67 million 
C)  7.12 million 
D)  7.53 million 
E)  7.88 million 
A)  6.28 million 
B)  6.67 million 
C)  7.12 million 
D)  7.53 million 
E)  7.88 million

Question 5

Consider the following information on GDP and CPI for an economy over the last 3 years.Calculate nominal GDP growth for 2012.

Accepted Answer

A)  2.15% 
B)  2.56% 
C)  2.95% 
D)  3.15% 
E)  3.32% 
A)  2.15% 
B)  2.56% 
C)  2.95% 
D)  3.15% 
E)  3.32%

Question 6

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?

Accepted Answer

A)  15% 
B)  18% 
C)  20% 
D)  22% 
E)  25% 
A)  15% 
B)  18% 
C)  20% 
D)  22% 
E)  25%

Question 7

Which of the following combinations describes a "goldilocks" scenario?

Accepted Answer

A)  slow income growth, low unemployment and low inflation 
B)  rapid income growth, high unemployment and low inflation 
C)  rapid income growth, low unemployment and low inflation 
D)  rapid income growth, low unemployment and high inflation 
E)  rapid income growth, high unemployment and high inflation 
A)  slow income growth, low unemployment and low inflation 
B)  rapid income growth, high unemployment and low inflation 
C)  rapid income growth, low unemployment and low inflation 
D)  rapid income growth, low unemployment and high inflation 
E)  rapid income growth, high unemployment and high inflation

Question 8

Which sector has a low sensitivity to the business cycle?

Accepted Answer

A)  defensive 
B)  offensive 
C)  lagging 
D)  cyclical 
E)  leading 
A)  defensive 
B)  offensive 
C)  lagging 
D)  cyclical 
E)  leading

Question 9

Which one of the following is defined as the market value of goods and services produced over a period of time?

Accepted Answer

A)  Domestic Market Product (DMP) 
B)  Gross Domestic Product (GDP) 
C)  Gross Economic Activity (GE
A)  
D)  Gross Market Value (GMV) 
E)  Market Value Product (MVP) 
A)  Domestic Market Product (DMP) 
B)  Gross Domestic Product (GDP) 
C)  Gross Economic Activity (GE
A)  
D)  Gross Market Value (GMV) 
E)  Market Value Product (MVP)

Question 10

You invest $250,000 in Japan at a starting exchange rate of 101.50×/$.Your Japanese investment gains 5.6 percent,and the ending exchange rate is 102.40×/$.What is your total return on this investment?

Accepted Answer

A)  3.91% 
B)  4.13% 
C)  4.67% 
D)  4.82% 
E)  5.08% 
A)  3.91% 
B)  4.13% 
C)  4.67% 
D)  4.82% 
E)  5.08%

Question 11

If the nominal GDP was reported at $1,677 billion and inflation was 1.25%,what is the level of real GDP for the period?

Accepted Answer

A)  $1,579.54 
B)  $1,591.41 
C)  $1,612.75 
D)  $1,656.30 
E)  $1,673.95 
A)  $1,579.54 
B)  $1,591.41 
C)  $1,612.75 
D)  $1,656.30 
E)  $1,673.95

Question 12

Your $785,000 investment in Mexico gained 6 percent.If the exchange rate moves from 13.4 pesos per dollar to 12.5 per dollar over the period,what is your total return on this investment?

Accepted Answer

A)  12.57% 
B)  12.86% 
C)  13.12% 
D)  13.63% 
E)  13.91% 
A)  12.57% 
B)  12.86% 
C)  13.12% 
D)  13.63% 
E)  13.91%

Question 13

It has been estimated that "substitution effects" underestimate the Consumer Price Index by approximately how much?

Accepted Answer

A)  3% 
B)  2.5% 
C)  1.75% 
D)  1.0% 
E)  0.5% 
A)  3% 
B)  2.5% 
C)  1.75% 
D)  1.0% 
E)  0.5%

Question 14

The relationship between GDP and market capitalization for the leading economies of the world is generally ________.

Accepted Answer

A)  weakly related 
B)  inversely related 
C)  negatively correlated 
D)  positively correlated 
E)  unrelated 
A)  weakly related 
B)  inversely related 
C)  negatively correlated 
D)  positively correlated 
E)  unrelated

Question 15

Which of the following is not a Threat of New Entrants according to Porter's Five Forces?

Accepted Answer

A)  economies of scale 
B)  product differentiation 
C)  quality of substitutes 
D)  capital requirements 
E)  government policies 
A)  economies of scale 
B)  product differentiation 
C)  quality of substitutes 
D)  capital requirements 
E)  government policies

Question 16

Which of the following interest rates is directly controlled by the Federal Reserve?

Accepted Answer

A)  the fed funds rate 
B)  the discount rate 
C)  the prime rate 
D)  mortgage rates 
E)  credit card rates 
A)  the fed funds rate 
B)  the discount rate 
C)  the prime rate 
D)  mortgage rates 
E)  credit card rates

Question 17

The so-called "M1" money supply includes which of the following?

Accepted Answer

A)  currency and checking deposits 
B)  currency and money markets 
C)  currency and time deposits 
D)  currency, time deposits and money markets 
E)  checking and time deposits 
A)  currency and checking deposits 
B)  currency and money markets 
C)  currency and time deposits 
D)  currency, time deposits and money markets 
E)  checking and time deposits

Question 18

Assume the inflation rate in 2016 is 1.5 percent.If the nominal GDP grew 3.1 percent and nominal wages grew 2.0 percent,what are the approximate real growth rates of GDP and wages?

Accepted Answer

A)  1.00%; 0.40% 
B)  1.15%; 0.50% 
C)  1.20%; 0.50% 
D)  1.40%; 0.90% 
E)  1.60%; 0.50% 
A)  1.00%; 0.40% 
B)  1.15%; 0.50% 
C)  1.20%; 0.50% 
D)  1.40%; 0.90% 
E)  1.60%; 0.50%

Question 19

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

Accepted Answer

A)  depreciated 
B)  appreciated 
C)  declined 
D)  improved 
E)  increased 
A)  depreciated 
B)  appreciated 
C)  declined 
D)  improved 
E)  increased

Question 20

An analyst gathered the following year-end price level data for an economy.What is the economy's annual inflation rate for 2013?

Accepted Answer

A)  3.07% 
B)  3.32% 
C)  3.58% 
D)  3.87% 
E)  3.92% 
A)  3.07% 
B)  3.32% 
C)  3.58% 
D)  3.87% 
E)  3.92%

The labor force divided by the nonmilitary working age population equals the ________.

The power of a "rippling effect" of adding money to the financial system is measured by the ________.

The process of moving investments between sectors of the economy over time is called ________.

Suppose you want to convert U.S.dollars to Indian rupees.If you have $120,000 and the exchange rate is $0.0159 per rupee,how many rupees (in millions)will you receive in the conversion?

Consider the following information on GDP and CPI for an economy over the last 3 years.Calculate nominal GDP growth for 2012.

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?

Which of the following combinations describes a "goldilocks" scenario?

Which sector has a low sensitivity to the business cycle?

Which one of the following is defined as the market value of goods and services produced over a period of time?

You invest $250,000 in Japan at a starting exchange rate of 101.50×/$.Your Japanese investment gains 5.6 percent,and the ending exchange rate is 102.40×/$.What is your total return on this investment?

If the nominal GDP was reported at $1,677 billion and inflation was 1.25%,what is the level of real GDP for the period?

Your $785,000 investment in Mexico gained 6 percent.If the exchange rate moves from 13.4 pesos per dollar to 12.5 per dollar over the period,what is your total return on this investment?

It has been estimated that "substitution effects" underestimate the Consumer Price Index by approximately how much?

The relationship between GDP and market capitalization for the leading economies of the world is generally ________.

Which of the following is not a Threat of New Entrants according to Porter's Five Forces?

Which of the following interest rates is directly controlled by the Federal Reserve?

The so-called "M1" money supply includes which of the following?

Assume the inflation rate in 2016 is 1.5 percent.If the nominal GDP grew 3.1 percent and nominal wages grew 2.0 percent,what are the approximate real growth rates of GDP and wages?

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

An analyst gathered the following year-end price level data for an economy.What is the economy's annual inflation rate for 2013?

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

The labor force divided by the nonmilitary working age population equals the ________.

The power of a "rippling effect" of adding money to the financial system is measured by the ________.

The process of moving investments between sectors of the economy over time is called ________.

Suppose you want to convert U.S.dollars to Indian rupees.If you have $120,000 and the exchange rate is $0.0159 per rupee,how many rupees (in millions)will you receive in the conversion?

Consider the following information on GDP and CPI for an economy over the last 3 years.Calculate nominal GDP growth for 2012.

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?

Which of the following combinations describes a "goldilocks" scenario?

Which sector has a low sensitivity to the business cycle?

Which one of the following is defined as the market value of goods and services produced over a period of time?

You invest $250,000 in Japan at a starting exchange rate of 101.50×/$.Your Japanese investment gains 5.6 percent,and the ending exchange rate is 102.40×/$.What is your total return on this investment?

If the nominal GDP was reported at $1,677 billion and inflation was 1.25%,what is the level of real GDP for the period?

Your $785,000 investment in Mexico gained 6 percent.If the exchange rate moves from 13.4 pesos per dollar to 12.5 per dollar over the period,what is your total return on this investment?

It has been estimated that "substitution effects" underestimate the Consumer Price Index by approximately how much?

The relationship between GDP and market capitalization for the leading economies of the world is generally ________.

Which of the following is not a Threat of New Entrants according to Porter's Five Forces?

Which of the following interest rates is directly controlled by the Federal Reserve?

The so-called "M1" money supply includes which of the following?

Assume the inflation rate in 2016 is 1.5 percent.If the nominal GDP grew 3.1 percent and nominal wages grew 2.0 percent,what are the approximate real growth rates of GDP and wages?

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

An analyst gathered the following year-end price level data for an economy.What is the economy's annual inflation rate for 2013?

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