Question 1

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 A

Question 2

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

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% A

Question 3

Which of the following reflects the dollar value of economic output in terms of the current year?

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 C

Question 4

Which of the following is NOT one of the four stages of the business cycle?

Accepted Answer

A) boom 
B) peak 
C) contraction 
D) trough 
E) expansion 
A) boom 
B) peak 
C) contraction 
D) trough 
E) expansion

Question 5

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 6

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 7

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 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 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 10

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 11

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 12

Assume the inflation rate in 2012 is 2.1 percent.If the nominal GDP grew 3.2 percent and nominal wages grew 2.6 percent,what are the approximate real growth rates of GDP and wages?

Accepted Answer

A) 1.00%; 0.40% 
B) 1.05%; 0.50% 
C) 1.10%; 0.50% 
D) 1.10%; 0.60% 
E) 1.15%; 0.60% 
A) 1.00%; 0.40% 
B) 1.05%; 0.50% 
C) 1.10%; 0.50% 
D) 1.10%; 0.60% 
E) 1.15%; 0.60%

Question 13

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 14

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 15

Suppose you are a U.S.investor who is planning to invest $350,000 in China.Your Chinese investment gains 8 percent.If the exchange rate moves from 6.09 Yuan per dollar to 6.12 per dollar over the period,what is your total return on this investment?

Accepted Answer

A) 6.55% 
B) 6.71% 
C) 6.98% 
D) 7.29% 
E) 7.47% 
A) 6.55% 
B) 6.71% 
C) 6.98% 
D) 7.29% 
E) 7.47%

Question 16

Assume the inflation rate in 2012 is 1.3 percent.If the nominal GDP grew 3.5 percent and nominal wages grew 2.6 percent,what are the approximate real growth rates of GDP and wages?

Accepted Answer

A) 2.00%; 0.80% 
B) 3.05%; 0.90% 
C) 2.10%; 1.10% 
D) 2.20%; 1.20% 
E) 2.20%; 1.30% 
A) 2.00%; 0.80% 
B) 3.05%; 0.90% 
C) 2.10%; 1.10% 
D) 2.20%; 1.20% 
E) 2.20%; 1.30%

Question 17

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 18

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

Question 19

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 20

Assume there are 475 million people in the United States,175 million of which make up the labor force.If 16 million are unemployed,what is the unemployment rate?

Accepted Answer

A) 8.35% 
B) 9.14% 
C) 10.91% 
D) 11.05% 
E) 11.74% 
A) 8.35% 
B) 9.14% 
C) 10.91% 
D) 11.05% 
E) 11.74%

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

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

Which of the following reflects the dollar value of economic output in terms of the current year?

Which of the following is NOT one of the four stages of the business cycle?

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

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

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

Which sector has a low sensitivity to the business cycle?

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

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?

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

Assume the inflation rate in 2012 is 2.1 percent.If the nominal GDP grew 3.2 percent and nominal wages grew 2.6 percent,what are the approximate real growth rates of GDP and wages?

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

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

Suppose you are a U.S.investor who is planning to invest $350,000 in China.Your Chinese investment gains 8 percent.If the exchange rate moves from 6.09 Yuan per dollar to 6.12 per dollar over the period,what is your total return on this investment?

Assume the inflation rate in 2012 is 1.3 percent.If the nominal GDP grew 3.5 percent and nominal wages grew 2.6 percent,what are the approximate real growth rates of GDP and wages?

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

The relationship between inflation and real GDP is _____.

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?

Assume there are 475 million people in the United States,175 million of which make up the labor force.If 16 million are unemployed,what is the unemployment rate?

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

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

Which of the following reflects the dollar value of economic output in terms of the current year?

Which of the following is NOT one of the four stages of the business cycle?

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

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

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

Which sector has a low sensitivity to the business cycle?

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

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?

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

Assume the inflation rate in 2012 is 2.1 percent.If the nominal GDP grew 3.2 percent and nominal wages grew 2.6 percent,what are the approximate real growth rates of GDP and wages?

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

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

Suppose you are a U.S.investor who is planning to invest $350,000 in China.Your Chinese investment gains 8 percent.If the exchange rate moves from 6.09 Yuan per dollar to 6.12 per dollar over the period,what is your total return on this investment?

Assume the inflation rate in 2012 is 1.3 percent.If the nominal GDP grew 3.5 percent and nominal wages grew 2.6 percent,what are the approximate real growth rates of GDP and wages?

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

The relationship between inflation and real GDP is _____.

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?

Assume there are 475 million people in the United States,175 million of which make up the labor force.If 16 million are unemployed,what is the unemployment rate?

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