please answer all of them, thank you
10. Some of the major coincident indicators would
be:
A. money supply (M2), consumer expectations, and stock prices
(S&P 500).
B. personal income, employees on nonagricultural payrolls, and
industrial production.
C. average prime rate charged by banks, labor cost
per unit of output, and commercial and industrial loans
outstanding.
D. All of the above are coincident indicators
13. The ultimate purpose of fundamental stock valuation
is:
A. to eliminate stocks of those companies that are potential losers
from the portfolio.
B. to identify for purchase those companies that
are fundamentally undervalued.
C. to learn to identify peaks and troughs of the business
cycle.
D. Two of the above.
16. All of the following are disadvantages of fiscal
policy, except:
A. a long implementation lag.
B. that it may be politically motivated.
C. that it may be economically motivated.
D. that congress must approve the budgets and develop the tax
laws.
17. In order to stimulate the economy out of the
2008-2010 recession, the Federal Reserve Board:
A. printed more money than they have in decades.
B. did everything they could to see that the federal deficit was
reduced as much as possible.
C. drove interest rates to their lowest levels in decades.
D. lowered taxes.
18. The primary tools used to stimulate economic
activity are:
A. international banking policies.
B. monetary and fiscal policies.
C. tax policy and interest rates.
D. imports and exports.
19. Economic analysis is important for investors,
because they need to anticipate
A. changes in corporate profits due to business
cycle impacts.
B. growth in various industry segments based on
changing economic trends.
C. how foreign trade might affect U.S. companies.
D. All of the above
20. Fiscal policy concerns the implementation of the
government's
A. spending and taxing plans.
B. money supply and interest rate strategy.
C. foreign trade policy.
D. attitude towards business investment.
21. Fiscal policy is implemented by:
A. the President of the U.S.
B. the Senate.
C. the Federal Reserve.
D. Congress (the House and the Senate).
22. Which of the following are true
statements?
A. When a country's economy is healthy, its
citizens will spend more in general.
B. When a country's economy is healthy, its citizens will import
more high-priced luxury goods.
C. When a country's economy is healthy, its currency rises against
its trading partners.
D. A and B are both correct
23. The breakdown of U.S. Gross Domestic Product into its
major categories is usually as which of the
following?
A. Personal Consumption, Government Purchases, Net
Exports
B. Personal Consumption, Government Purchases, Gross Private
Domestic Investment, Net Exports
C. Personal Consumption, Corporate Consumption, Government
Consumption
D. Domestic Consumption and consumption of foreign goods by U.S.
citizens
24. Capacity utilization measures current manufacturing
output against potential output. Which of the following statements
is correct?
A. When capacity utilization is low, companies use their most
productive and efficient plants and equipment.
B. As capacity utilization increases, companies
bring less efficient plants and equipment on line.
C. When the capacity utilization rate moves above 80%, inflationary
pressures may start to build in the economy.
D. All of the above are true
25. In the comparative international arena of real GDP
growth rates, which country has had the highest growth in real GDP
over the years 1993 to 2005?
A. The United States
B. Japan
C. China
D. Germany
Solution for Question 10:
Answer the Correct option is B
Justification : Personal Income, Employees on non-agricultural payrolls and Industrial production are some of the major Coincident Indicators. The above stated Coincident Indicators provide information on the current status of the economy
Other choices are incorrect due to the below reasons:
Option A is incorrect, since "Money supply (M2), consumer expectations and stock prices (S&P 500)" are all leading indicators of the economy. Leading Indicators change before the economy as a whole changes
Option C is incorrect, since "average prime rate charged by banks, labour cost per unit of output and commercial and industrial loans outstanding" are all lagging indicators of the economy. Lagging indicators usually change after the economy as a whole changes
Option D is incorrect, since only Option B represents the coincident indicators.
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