Economic Analysis
Showing posts with label Economic Analysis. Show all posts
Showing posts with label Economic Analysis. Show all posts

An increasing Consumer Confidence Index indicates that:

An increasing Consumer Confidence Index indicates that:



I consumers are confident in the overall economy

II consumers are not confident in the overall economy

III future spending is likely to increase

IV future spending is likely to fall



Answer: I and III

Which of the following statements are TRUE regarding the "help wanted" advertising index?

Which of the following statements are TRUE regarding the "help wanted" advertising index?



I If the number of advertisements is increasing, the economy is growing

II If the number of advertisements is increasing, the economy is contracting

III The index is a leading economic indicator

IV The index is a lagging economic indicator



Answer: I and III

Which of the following is a lagging economic indicator?

Which of the following is a lagging economic indicator?



A. Index of Industrial Production

B. Reported corporate profits

C. Standard and Poor's 500 Index

D. New consumer goods orders



Answer: B. Reported corporate profits

Which is considered to be a coincident economic indicator?

Which is considered to be a coincident economic indicator?



A. Stock market prices

B. Corporate profits

C. Index of industrial production

D. Orders for machinery



Answer: C. Index of industrial production

Which of the following is a leading economic indicator?

Which of the following is a leading economic indicator?



A. Personal Income

B. Employment Duration

C. Labor Cost Per Manufactured Unit

D. Contracts for plant and equipment



Answer: D. Contracts for plant and equipment

Which of the following statements are TRUE about the Federal Funds rate?

Which of the following statements are TRUE about the Federal Funds rate?



I The Federal Funds rate is set by the Federal Reserve and is the rate at which member banks can borrow reserves from the Fed

II Federal Reserve actions taken by the FOMC will influence the Federal Funds rate

III The Federal Funds Rate is lower than the discount rate

IV The "Effective" Federal Funds rate is the daily compounded rate of interest paid by borrowers



Answer: II and III only

The term "hawkish" monetary policy means that:

The term "hawkish" monetary policy means that:



A. the Federal Reserve is loosening credit by lowering interest rates

B. the Federal Reserve is tightening credit by raising interest rates

C. Congress is stimulating economic growth by increasing government spending

D. Congress is curbing economic growth by decreasing government spending



Answer: B. the Federal Reserve is tightening credit by raising interest rates

What can the Federal Reserve do to stimulate the economy?

What can the Federal Reserve do to stimulate the economy?



A. Buy Treasury securities from banks

B. Sell Treasury securities to banks

C. Increase the reserve requirement

D. Increase the margin requirement



Answer: A. Buy treasury securities from banks

Which of the following actions by the Federal Reserve will increase interest rates?

Which of the following actions by the Federal Reserve will increase interest rates?



I Purchases of securities as directed by the FOMC

II Sales of securities as directed by the FOMC

III Repurchase agreements with U.S. Government dealers and banks

IV Reverse repurchase agreements with U.S. Government dealers and banks



Answer: II and IV

Which tool would be used by the Federal Reserve to control inflation?

Which tool would be used by the Federal Reserve to control inflation?



A. Adjusting tax rates

B. Adjusting the level of government spending

C. Adjusting the balance of payments

D. Adjusting the discount rate



Answer: D. Adjusting the discount rate

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