Question 1

Explain the three tiers of "top-down analysis".

Accepted Answer

Top-down analysis is a method used in fi

Question 2

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 3

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

Question 5

Which of the following is not listed as a cause of increased integration of economies around the world?

Accepted Answer

A) increased technology 
B) increased international travel 
C) improved supply chain logistic 
D) reduced trade barriers 
E) none of these 
A) increased technology 
B) increased international travel 
C) improved supply chain logistic 
D) reduced trade barriers 
E) none of these

Question 6

If the nominal GDP was reported at $122.3 billion and real GDP was reported at $120.1 billion,what was the inflation rate for the period?

Accepted Answer

A) 1.59% 
B) 1.83% 
C) 2.32% 
D) 2.62% 
E) 2.88% 
A) 1.59% 
B) 1.83% 
C) 2.32% 
D) 2.62% 
E) 2.88%

Question 7

As a U.S.investor,you decide to invest $110,000 in Switzerland.You do so at a starting exchange rate of 1.093 SwFr/$.Your Swiss investment gains 7 percent,and the ending exchange rate is 1.091SwFr/$.What is your total return on this investment?

Accepted Answer

A) 6.30% 
B) 6.85% 
C) 7.20% 
D) 7.40% 
E) 7.55% 
A) 6.30% 
B) 6.85% 
C) 7.20% 
D) 7.40% 
E) 7.55%

Question 8

If wages grew 3.15 percent in 2013,but inflation was 2.75 percent,what was the approximate real increase in wages?

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 9

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

Question 10

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 11

If the nominal GDP was reported at $133.2 billion and real GDP was reported at $129.8 billion,what was the inflation rate for the period?

Accepted Answer

A) 1.59% 
B) 1.94% 
C) 2.32% 
D) 2.62% 
E) 2.88% 
A) 1.59% 
B) 1.94% 
C) 2.32% 
D) 2.62% 
E) 2.88%

Question 12

Which one of the following is not one of the elements in the industry life cycle?

Accepted Answer

A) Start-up 
B) Rapid growth 
C) Consolidation 
D) Maturity 
E) relative decline 
A) Start-up 
B) Rapid growth 
C) Consolidation 
D) Maturity 
E) relative decline

Question 13

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 14

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 15

If the nominal GDP was reported at $1,255.80 billion and inflation was 3.55%,what is the level of real GDP for the period?

Accepted Answer

A) $1,179.54 
B) $1,191.41 
C) $1,212.75 
D) $1,255.01 
E) $1,272.45 
A) $1,179.54 
B) $1,191.41 
C) $1,212.75 
D) $1,255.01 
E) $1,272.45

Question 16

Which sector has a high 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 17

You are planning to invest $150,000 in Hong Kong.If your Hong Kong investment gains 7.5 percent while the exchange rate moves from 7.75 Hong Kong dollars (HK$)per U.S.dollar to 7.70 per dollar over the period,what is your total return on this investment?

Accepted Answer

A) 6.8% 
B) 7.1% 
C) 7.6% 
D) 8.2% 
E) 8.4% 
A) 6.8% 
B) 7.1% 
C) 7.6% 
D) 8.2% 
E) 8.4%

Question 18

Assume that the Federal Reserve injects $5 billion into the financial system.If the reserve requirement is 25 percent,what is the maximum increase in money supply (in billions)?

Accepted Answer

A) $20.00 
B) $21.30 
C) $21.88 
D) $22.10 
E) $22.60 
A) $20.00 
B) $21.30 
C) $21.88 
D) $22.10 
E) $22.60

Question 19

"PIGS" refers to which 4 countries in Europe?

Accepted Answer

A) Portugal, Ireland, Greece and Spain 
B) Portugal, Ireland, Germany and Switzerland 
C) Poland, Ireland, Germany and Sweden 
D) Poland, Italy, Greece and Spain 
E) Poland, Italy, Greece and Slovenia 
A) Portugal, Ireland, Greece and Spain 
B) Portugal, Ireland, Germany and Switzerland 
C) Poland, Ireland, Germany and Sweden 
D) Poland, Italy, Greece and Spain 
E) Poland, Italy, Greece and Slovenia

Question 20

You invest $60,000 in Germany when the exchange rate is $1.41/€.Your investment gains 12%,and you subsequently exchange the euros back into dollars at a rate of $1.49/€.What is your total percentage return on this investment?

Accepted Answer

A) 17.48% 
B) 17.89% 
C) 18.10% 
D) 18.35% 
E) 18.85% 
A) 17.48% 
B) 17.89% 
C) 18.10% 
D) 18.35% 
E) 18.85%

Explain the three tiers of "top-down analysis".

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

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

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

Which of the following is not listed as a cause of increased integration of economies around the world?

If the nominal GDP was reported at $122.3 billion and real GDP was reported at $120.1 billion,what was the inflation rate for the period?

As a U.S.investor,you decide to invest $110,000 in Switzerland.You do so at a starting exchange rate of 1.093 SwFr/$.Your Swiss investment gains 7 percent,and the ending exchange rate is 1.091SwFr/$.What is your total return on this investment?

If wages grew 3.15 percent in 2013,but inflation was 2.75 percent,what was the approximate real increase in wages?

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

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?

If the nominal GDP was reported at $133.2 billion and real GDP was reported at $129.8 billion,what was the inflation rate for the period?

Which one of the following is not one of the elements in the industry life cycle?

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

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

If the nominal GDP was reported at $1,255.80 billion and inflation was 3.55%,what is the level of real GDP for the period?

Which sector has a high sensitivity to the business cycle?

You are planning to invest $150,000 in Hong Kong.If your Hong Kong investment gains 7.5 percent while the exchange rate moves from 7.75 Hong Kong dollars (HK$)per U.S.dollar to 7.70 per dollar over the period,what is your total return on this investment?

Assume that the Federal Reserve injects $5 billion into the financial system.If the reserve requirement is 25 percent,what is the maximum increase in money supply (in billions)?

"PIGS" refers to which 4 countries in Europe?

You invest $60,000 in Germany when the exchange rate is $1.41/€.Your investment gains 12%,and you subsequently exchange the euros back into dollars at a rate of $1.49/€.What is your total percentage return on this investment?

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

Explain the three tiers of "top-down analysis".

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

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

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

Which of the following is not listed as a cause of increased integration of economies around the world?

If the nominal GDP was reported at $122.3 billion and real GDP was reported at $120.1 billion,what was the inflation rate for the period?

As a U.S.investor,you decide to invest $110,000 in Switzerland.You do so at a starting exchange rate of 1.093 SwFr/$.Your Swiss investment gains 7 percent,and the ending exchange rate is 1.091SwFr/$.What is your total return on this investment?

If wages grew 3.15 percent in 2013,but inflation was 2.75 percent,what was the approximate real increase in wages?

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

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?

If the nominal GDP was reported at $133.2 billion and real GDP was reported at $129.8 billion,what was the inflation rate for the period?

Which one of the following is not one of the elements in the industry life cycle?

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

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

If the nominal GDP was reported at $1,255.80 billion and inflation was 3.55%,what is the level of real GDP for the period?

Which sector has a high sensitivity to the business cycle?

You are planning to invest $150,000 in Hong Kong.If your Hong Kong investment gains 7.5 percent while the exchange rate moves from 7.75 Hong Kong dollars (HK$)per U.S.dollar to 7.70 per dollar over the period,what is your total return on this investment?

Assume that the Federal Reserve injects $5 billion into the financial system.If the reserve requirement is 25 percent,what is the maximum increase in money supply (in billions)?

"PIGS" refers to which 4 countries in Europe?

You invest $60,000 in Germany when the exchange rate is $1.41/€.Your investment gains 12%,and you subsequently exchange the euros back into dollars at a rate of $1.49/€.What is your total percentage return on this investment?

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