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

Which index is the narrowest measure of the market?

Which index is the narrowest measure of the market?



A. Wilshire Index

B. Value Line Index

C. NYSE Composite Index

D. Dow Jones Industrial Average



Answer: D. Dow Jones Industrial Average

A customer viewing virtual trading floor information on the NYSE Website notices that he can see most, but not all, of the stocks included in the Dow Jones Industrial Average, trading on the floor. The customer asks his registered representative why this is the case. The customer should be told that:

A customer viewing virtual trading floor information on the NYSE Website notices that he can see most, but not all, of the stocks included in the Dow Jones Industrial Average, trading on the floor. The customer asks his registered representative why this is the case. The customer should be told that:



A. Of the 30 stocks included in a Dow Jones Industrial Average, a handful do not trade on the NYSE

B. The NYSE only includes the most actively traded Dow Jones Industrial Average stocks in the display

C. These are the companies that have not paid the NYSE to be included in the display

D. The companies that are not displayed have just announced significant news and trading has been halted in those issues until the news is disseminated



Answer: A. Of the 30 stocks included in a Dow Jones Industrial Average, a handful do not trade on the NYSE

An investor holds an international bond fund. Regarding the performance of the fund, which of the following statements are TRUE?

An investor holds an international bond fund. Regarding the performance of the fund, which of the following statements are TRUE?



I If the foreign currency value rises against the dollar, the fund's Net Asset Value will increase

II If the foreign currency value rises against the dollar, the fund's Net Asset Value will decrease

III If the dollar falls against the foreign currency, the fund will have an inferior performance relative to dollar denominated funds

IV If the dollar falls against the foreign currency, the fund will have a superior performance relative to dollar denominated funds



Answer: I and IV

During the past year, foreign investment in the United States has been increasing. The likely cause for this is:

During the past year, foreign investment in the United States has been increasing. The likely cause for this is:



A. the United States has been running a trade surplus, demonstrating the strength of the economy

B. interest rates in the United States are higher than those available overseas

C. the U.S. economy has been undergoing a broad expansion during the past year

D. the dollar has been strengthening, producing gains for investors in dollars over the past year



Answer: B. Interest rates in the United States are higher than those available overseas 

If the real Gross Domestic Product of the G-20 countries is growing at a faster rate than real Gross Domestic Product growth in the United States, then the value of the U.S. dollar can be expected to:

If the real Gross Domestic Product of the G-20 countries is growing at a faster rate than real Gross Domestic Product growth in the United States, then the value of the U.S. dollar can be expected to:



A. appreciate

B. depreciate

C. fluctuate

D. stagnate



Answer: B. depreciate

Trading in the Interbank market will affect all of the following directly EXCEPT:

Trading in the Interbank market will affect all of the following directly EXCEPT:



A. foreign currency prices in terms of U.S. dollars

B. American Depositary Receipt prices in terms of U.S. dollars

C. future economic growth

D. future trade deficit or surplus figures



Answer: B. American Depositary Receipt prices in terms of U.S. dollars

Trading in the Interbank market will DIRECTLY affect:

Trading in the Interbank market will DIRECTLY affect:



I American Depositary Receipt prices in terms of U.S. dollars

II Foreign Currency prices in terms of U.S. dollars

III Future trade deficit or surplus figures

IV Future economic growth



Answer: II, III, and IV

Which of the following statements are TRUE about the interbank market?

Which of the following statements are TRUE about the interbank market?



I Foreign currency values are determined in this market

II The market is centralized

III Trading is regulated

IV Foreign policy actions affect values in the market



Answer: I and IV

A U.S. balance of payments deficit would be narrowed by which of the following?

A U.S. balance of payments deficit would be narrowed by which of the following?



A. Increased levels of U.S. imports

B. Decreased sales of U.S. securities to foreign holders

C. Increased levels of foreign tourists visiting the United States

D. Increased dividends paid to foreign holders of U.S. securities



Answer: C. Increased levels of foreign tourists visiting the United States (If the balance of payments is running a deficit, then more U.S. Dollars are being spent abroad for foreign goods and services than are being spent in the United States by foreigners for domestic goods and services.

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