Question 1

An analyst gathered the following year-end price level data for an economy.What is the economy's annual compounded inflation rate for 2007-2012?

Accepted Answer

A)  2.22% 
B)  2.49% 
C)  2.68% 
D)  2.87% 
E)  2.92% 
A)  2.22% 
B)  2.49% 
C)  2.68% 
D)  2.87% 
E)  2.92%

Question 2

You invest $50,000 in Germany when the exchange rate is $1.35/€.Your investment gains 13%,and you subsequently exchange the euros back into dollars at a rate of $1.40/€.What is your total percentage return on this investment?

Accepted Answer

A)  16.48% 
B)  16.89% 
C)  17.19% 
D)  17.35% 
E)  17.85% 
A)  16.48% 
B)  16.89% 
C)  17.19% 
D)  17.35% 
E)  17.85%

Question 3

Suppose you are a U.S.investor who is planning to invest $200,000 in China.Your Chinese investment gains 7.5 percent.If the exchange rate moves from 5.10 Yuan per dollar to 5.20 per dollar over the period,what is your total return on this investment?

Accepted Answer

A)  4.55% 
B)  4.71% 
C)  4.98% 
D)  5.29% 
E)  5.43% 
A)  4.55% 
B)  4.71% 
C)  4.98% 
D)  5.29% 
E)  5.43%

Question 4

Consider the following information on GDP and CPI for an economy over the last 3 years.Calculate nominal GDP growth for 2011.

Accepted Answer

A)  2.15% 
B)  2.56% 
C)  2.95% 
D)  3.15% 
E)  3.22% 
A)  2.15% 
B)  2.56% 
C)  2.95% 
D)  3.15% 
E)  3.22%

Question 5

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?

Accepted Answer

A)  10% 
B)  12% 
C)  15% 
D)  18% 
E)  20% 
A)  10% 
B)  12% 
C)  15% 
D)  18% 
E)  20%

Question 6

The buying and selling of bonds by the Federal Reserve to manage the money supply is called ________.

Accepted Answer

A)  quantitative easing 
B)  discount window operations 
C)  open market operations 
D)  money supply management 
E)  Federal Reserve operations 
A)  quantitative easing 
B)  discount window operations 
C)  open market operations 
D)  money supply management 
E)  Federal Reserve operations

Question 7

Assume the inflation rate in 2016 is 1.2 percent.If the nominal GDP grew 3.3 percent and nominal wages grew 2.1 percent,what are the approximate real growth rates of GDP and wages?

Accepted Answer

A)  2.00%; 0.40% 
B)  2.05%; 0.50% 
C)  2.10%; 0.50% 
D)  2.10%; 0.90% 
E)  2.15%; 0.60% 
A)  2.00%; 0.40% 
B)  2.05%; 0.50% 
C)  2.10%; 0.50% 
D)  2.10%; 0.90% 
E)  2.15%; 0.60%

Question 8

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

Accepted Answer

A)  current year GDP 
B)  real GDP 
C)  nominal GDP 
D)  adjusted GDP 
E)  actual GDP 
A)  current year GDP 
B)  real GDP 
C)  nominal GDP 
D)  adjusted GDP 
E)  actual GDP

Question 9

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

Accepted Answer

A)  tax policy 
B)  budgetary policy 
C)  federal spending policy 
D)  fiscal policy 
E)  monetary policy 
A)  tax policy 
B)  budgetary policy 
C)  federal spending policy 
D)  fiscal policy 
E)  monetary policy

Question 10

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

Accepted Answer

A)  $24.00 
B)  $24.30 
C)  $24.88 
D)  $24.10 
E)  $24.62 
A)  $24.00 
B)  $24.30 
C)  $24.88 
D)  $24.10 
E)  $24.62

Question 11

In the U.S.,what percentage of the GDP is consumer spending?

Accepted Answer

A)  45% 
B)  55% 
C)  65% 
D)  75% 
E)  85% 
A)  45% 
B)  55% 
C)  65% 
D)  75% 
E)  85%

Question 12

Suppose you are a U.S.investor who is planning to invest $100,000 in China.Your Chinese investment gains 6 percent.If the exchange rate moves from 7.10 Yuan per dollar to 7.15 per dollar over the period,what is your total return on this investment?

Accepted Answer

A)  4.52% 
B)  4.76% 
C)  4.91% 
D)  5.26% 
E)  5.49% 
A)  4.52% 
B)  4.76% 
C)  4.91% 
D)  5.26% 
E)  5.49%

Question 13

Which of the following is NOT one of Michael Porter's Five Forces?

Accepted Answer

A)  threat of new entrants 
B)  bargaining power of buyers 
C)  bargaining power of suppliers 
D)  threat of new technology 
E)  threat of substitute products 
A)  threat of new entrants 
B)  bargaining power of buyers 
C)  bargaining power of suppliers 
D)  threat of new technology 
E)  threat of substitute products

An analyst gathered the following year-end price level data for an economy.What is the economy's annual compounded inflation rate for 2007-2012?

You invest $50,000 in Germany when the exchange rate is $1.35/€.Your investment gains 13%,and you subsequently exchange the euros back into dollars at a rate of $1.40/€.What is your total percentage return on this investment?

Suppose you are a U.S.investor who is planning to invest $200,000 in China.Your Chinese investment gains 7.5 percent.If the exchange rate moves from 5.10 Yuan per dollar to 5.20 per dollar over the period,what is your total return on this investment?

Consider the following information on GDP and CPI for an economy over the last 3 years.Calculate nominal GDP growth for 2011.

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?

The buying and selling of bonds by the Federal Reserve to manage the money supply is called ________.

Assume the inflation rate in 2016 is 1.2 percent.If the nominal GDP grew 3.3 percent and nominal wages grew 2.1 percent,what are the approximate real growth rates of GDP and wages?

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

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

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

In the U.S.,what percentage of the GDP is consumer spending?

Suppose you are a U.S.investor who is planning to invest $100,000 in China.Your Chinese investment gains 6 percent.If the exchange rate moves from 7.10 Yuan per dollar to 7.15 per dollar over the period,what is your total return on this investment?

Which of the following is NOT one of Michael Porter's Five Forces?

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

An analyst gathered the following year-end price level data for an economy.What is the economy's annual compounded inflation rate for 2007-2012?

You invest $50,000 in Germany when the exchange rate is $1.35/€.Your investment gains 13%,and you subsequently exchange the euros back into dollars at a rate of $1.40/€.What is your total percentage return on this investment?

Suppose you are a U.S.investor who is planning to invest $200,000 in China.Your Chinese investment gains 7.5 percent.If the exchange rate moves from 5.10 Yuan per dollar to 5.20 per dollar over the period,what is your total return on this investment?

Consider the following information on GDP and CPI for an economy over the last 3 years.Calculate nominal GDP growth for 2011.

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?

The buying and selling of bonds by the Federal Reserve to manage the money supply is called ________.

Assume the inflation rate in 2016 is 1.2 percent.If the nominal GDP grew 3.3 percent and nominal wages grew 2.1 percent,what are the approximate real growth rates of GDP and wages?

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

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

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

In the U.S.,what percentage of the GDP is consumer spending?

Suppose you are a U.S.investor who is planning to invest $100,000 in China.Your Chinese investment gains 6 percent.If the exchange rate moves from 7.10 Yuan per dollar to 7.15 per dollar over the period,what is your total return on this investment?

Which of the following is NOT one of Michael Porter's Five Forces?

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