Bmc Quiz - MCQGeeks.com

The purchase of which of the following products is most affected by interest rates?

0%
2.398%
0%
Above expectations
0%
A house
0%
Goldman Sachs

Engines are the most expensive, heavy component on an aircraft and are designed with detailed specifications. Which of the following would likely be the best theme for a Rolls-Royce analyst research note to help a portfolio manager decide between investing in Rolls-Royce or United Technologies?

0%
A comparison of the commercial prospects of new aircraft models
0%
Its storage costs
0%
Her mortgage payments and necessities are fixed
0%
a) EUR 4,717 moreb) EUR 4,717 fewerc) ZAR 4,717 mored) ZAR 4,717 fewer

The two yield curves in the chart are from September 10, 2001 (yellow) and October 10, 2001 (green)......

0%
Short-term forecasts
0%
Earnings estimates
0%
Cut interest rates
0%
Above expectations

Which country is the fourth biggest importer and exporter?

0%
Russia
0%
Minimal Change
0%
Core PCE
0%
Japan

The Dow Jones industrial average index has an unusual weighting methodology. Unlike the S&P 500, it is weighted by share price.....

0%
prices decline
0%
Minimal Change
0%
United Continental
0%
Goldman Sachs

Samsung is based in South Korea and reports in South Korean won....

0%
Dollar
0%
a) Dollarb) Euroc) Reald) Yuan
0%
2.398%
0%
Russia

Which of the following is most likely to be the most challenging part of this first step of the absolute valuation process?

0%
To know when specific economic data points are a positive or negative surprise.
0%
Hong Kong dollar against the U.S. dollar in 1997.
0%
Making the assumptions upon which the project future performance
0%
Timeliness of release

Which of the following important U.S. economic indicators is only available on a quarterly basis?

0%
Surprise changes in interest rates, inflation, and trade
0%
Timeliness of release
0%
They do not consistently presage turning points.
0%
GDP

Why does the yield curve tend to invert shortly before a recession?

0%
Corporate bond issuers go bankrupt more frequently then governments, as they do no have a tax base to fall back on in hard times
0%
a)By investing purely in ver large stocks in their home marketb)By investing in pegged currenciesc)By vacationing each year in a country with a weak currencyd)By locking in forward rates for known foreign payments
0%
The large government bond market competes for investors attention via yields
0%
An inverted yield curve means that bond traders are predicting interest rate cuts, and interest rate cuts happen in response to a recession.

Here is a chart showing both nominal GDP growth and real GDP growth for a country. Which of the following can be a true statement at the time the chart was captured?

0%
The country has deflation. The bottom line is nominal growth and the top line is real growth.
0%
Because GDP statistics are released well after other economic indicators.
0%
0.0239% above
0%
a)Workers demand pay increasesb)Prices declinec)Employment declinesd)Workers expect prices to increase

How do investors compare bonds?

0%
by comparing the yields of single bonds
0%
The estimated growth can be dramatically wrong.
0%
Investors do not after the calculation
0%
It determines how risky a stock is in comparison to the overall stock market

Samsung is based in South Korea and reports in South Korean won.... (A)

0%
a) Dollarb) Euroc) Reald) Yuan
0%
They are probably heavy exporters
0%
by comparing the yields of single bonds
0%
a) EUR 4,717 moreb) EUR 4,717 fewerc) ZAR 4,717 mored) ZAR 4,717 fewer

What is the main reason that investment banks create estimates of economic indicators?

0%
To know when specific economic data points are a positive or negative surprise.
0%
Because GDP statistics are released well after other economic indicators.
0%
A stock's P/E ratio can remain above or below market average for extended periods.
0%
To cut interest rates

What input do both absolute valuation and relative valuation typically require?

0%
nonfarm payrolls
0%
Above expectations
0%
Short-term forecasts
0%
MTU Aero Engines

Legendary investor Warren Buffett said, "Gold gets dug out of the ground..... Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head." Based on this quotation, what quality of gold is he referring to?

0%
Cut interest rates
0%
Coupon repayment
0%
To cut interest rates
0%
Its storage costs

how do earnings yields differ from bond yields?

0%
The cash flow from equities can continue indefinitely while the cash flow from most bonds comes to an end.
0%
They are probably heavy exporters
0%
Because the repayment amounts and timings are fixed for ordinary bonds
0%
The country has deflation. The bottom line is nominal growth and the top line is real growth.

Which one of the following actors benefits when interest rates go up?

0%
The estimated growth can be dramatically wrong.
0%
An investor who is about to buy bonds.
0%
A fishery exceeding fishing quotas
0%
a)By investing purely in ver large stocks in their home marketb)By investing in pegged currenciesc)By vacationing each year in a country with a weak currencyd)By locking in forward rates for known foreign payments

What is the most common target inflation rate for an advanced economy? (C)

0%
a) 3%b) 1%c) 2%d) 0%
0%
Sweden performed better
0%
a)115b)163c)132d)126
0%
Timeliness of release

This chart shows the output gap in the US from 1949 toWhat was the output gap in 1973?

0%
GDP
0%
200%
0%
Norway
0%
+3.0%

You are building a financial model of a bifocal lens manufacturer. Which of the following is the best driver to use?

0%
Median age of society
0%
The change in postal Volumes
0%
a) Canadab) Russiac) Indiad) Taiwan
0%
To compensate leaders for the greater risk of long-term loans compared to short-term loans

A wedding planning company has a high fixed-cost base and a lot of debt. Who would you rather be?

0%
Corporate impact, global impact, consumer impact.
0%
A shareholder in a booming economy.
0%
China's Aluminum Demand Weathers Real-Estate Slowdown so far
0%
Her mortgage payments and necessities are fixed

Why did the corporate spread significantly widen during the 2008 market crash?

0%
An inverted yield curve means that bond traders are predicting interest rate cuts, and interest rate cuts happen in response to a recession.
0%
Corporate bond issuers go bankrupt more frequently then governments, as they do no have a tax base to fall back on in hard times
0%
a)To respond quickly to changes in the currency marketsb) To avoid using any domestic currenciesc) To locate the cost base in the most favorable tax regimesd) To purchase materials for the plant more quickly
0%
Central bank interest rates

If the earnings per share of a company is $1 and the earnings yield is 2%, What is the price per share?

0%
$50.00
0%
+3.0%
0%
8.2%
0%
170%

Here is a chart of the index value for the S&P 500 and the United Kingdom's main equity index the FTSE 100, from the end of 2008 to early 2015.....

0%
126
0%
107.89
0%
260
0%
The S&P 500

Were the two oil crises in the 1970s linked to deflation or inflation? (C)

0%
To know when specific economic data points are a positive or negative surprise.
0%
a)Deflationb)Both deflation and inflationc)Inflationd)Neither deflation nor inflation
0%
The large government bond market competes for investors attention via yields
0%
Corporate bond issuers go bankrupt more frequently then governments, as they do no have a tax base to fall back on in hard times

As a general rule, what percentage of debt to GDP will make a government's bond yields spike?

0%
An investor who is about to buy bonds.
0%
Median age of society
0%
There is no general rule
0%
Timeliness of release

What is true of both the U.K. and the U.S.?

0%
Her mortgage payments and necessities are fixed
0%
Future profits are uncertain.
0%
To halt the vicious cycle of deflation
0%
Both countries are highly creditworthy.

Which of the following assigns the same relative weightings to short-term and long-term outcomes as the absolute valuation process?

0%
a)40 percentb)40 dollarsc)40 eurosd)40 yen
0%
A fishery exceeding fishing quotas
0%
A shareholder in a booming economy.
0%
Amazon

A rise in which of the following inputs will increase an absolute valuation?

0%
Inflation
0%
MTU Aero Engines
0%
Earnings estimates
0%
To cut interest rates

In the example highlighting the differences between bond holders and shareholders, we equated surgeon Jenny......

0%
a)The currency weakens, then strengthens. b)The currency strengthens, then weakens. c)The currency weakensd)The currency strengthens
0%
The change in postal Volumes
0%
D
0%
Deceleration

What is the median estimate for the number of Japanese yen per euro for Calendar year 2020? (D)

0%
a)115b)163c)132d)126
0%
The large government bond market competes for investors attention via yields
0%
Her mortgage payments and necessities are fixed
0%
a) 3%b) 1%c) 2%d) 0%

What typically happens to nonfarm payrolls, the PMI indicator, and housing starts at the onset of a recession in the United States?

0%
The large government bond market competes for investors attention via yields
0%
Nonfarm payrolls go down, the PMI indicator goes DOWN, the housing starts goes down.
0%
a)40 percentb)40 dollarsc)40 eurosd)40 yen
0%
Investors do not after the calculation

What is one reason why foreign governments lend to the U.S. government?

0%
The estimated growth can be dramatically wrong.
0%
To halt the vicious cycle of deflation
0%
To cut interest rates
0%
To build liquid FX reserves

Which of these headlines could move a currency pair?

0%
U.S. Stocks rally on Fed's Surprise reduction of Interest Rate.
0%
When you buy an equity, the most you can lose is 100% and your potential gain is unlimited.
0%
Surprise changes in interest rates, inflation, and trade
0%
They do not consistently presage turning points.

When investors doubt the creditworthiness of a borrower, how do they alter their calculation of the bond yield to take into account these doubts?

0%
A tendency to expand the borrowing capacity of the company.
0%
The estimated growth can be dramatically wrong.
0%
Investors do not after the calculation
0%
The change in postal Volumes

Legendary investor Warren Buffett said, "Gold gets dug out of the ground..... Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head." Based on this quotation, what quality of gold is he referring to? (A)

0%
a)Deflationb)Both deflation and inflationc)Inflationd)Neither deflation nor inflation
0%
There is not enough information to tell.
0%
Nike is more expensive than the S&P 500 on both a P/E and dividend yield basis
0%
a) Its storage costsb) Its durabilityc) Its Scarcityd) Its physical attractiveness

What is the prime reason that Jenny's discretionary income is more volatile than her salary?

0%
Both are estimated in advance by analysts.
0%
Corporate impact, global impact, consumer impact.
0%
Her mortgage payments and necessities are fixed
0%
Because GDP statistics are released well after other economic indicators.

These charts show data for four countries as of earlyFor each country, the purple line....

0%
Norway
0%
$50.00
0%
Indonesia
0%
Russia

Which of the following qualities of economic indicators do investors prize the most?

0%
To build liquid FX reserves
0%
By locking in forward rates for known foreign payments.
0%
Timeliness of release
0%
MTU Aero Engines

Here is the vicious deflationary cycle. What step connects the lower left gray arrow to the upper right blue arrow? (B)

0%
prices decline
0%
Because GDP statistics are released well after other economic indicators.
0%
a)Workers demand pay increasesb)Prices declinec)Employment declinesd)Workers expect prices to increase
0%
a)40 percentb)40 dollarsc)40 eurosd)40 yen

This chart was captured in mid-At that point in time, which of the following terms.....

0%
Amazon
0%
Inflation
0%
MTU Aero Engines
0%
Deceleration

Why does the United States have a strong reputation for creditworthiness?

0%
Surprise changes in interest rates, inflation, and trade
0%
because it has the right to tax the wealthiest population on earth
0%
U.S. Stocks rally on Fed's Surprise reduction of Interest Rate.
0%
By locking in forward rates for known foreign payments.

What is the 10-year to 3-month term premium of the following yield curve?

0%
PMI
0%
GDP
0%
A house
0%
2.398%

Here is a breakdown of post-it note inventor 3M's revenue by industry. Which of the following industry drivers....

0%
Future profits are uncertain.
0%
China's construction of....
0%
The change in postal Volumes
0%
The country has deflation. The bottom line is nominal growth and the top line is real growth.

According to the Big Mac index screen, which of the following four countries' currency is the most undervalued?

0%
Norway
0%
China
0%
2.398%
0%
$50.00

Widget Co has a market capitalization of $100 million. it does a 10-for-1 stock split. it then does a 1-for-16 reverse stock split. Finally, it does a 35-for-1 stock split. Nothing else changes. what's the new market cap?

0%
MTU Aero Engines
0%
$100 million
0%
United Continental
0%
Its storage costs

You buy the stock of four consumer goods companies at the end of 2004 and hold them until August 2010.....

0%
Procter & Gamble
0%
United Continental
0%
Above expectations
0%
Cut interest rates

What does the release of earnings announcements have in common with the release of economic indicators?

0%
Corporate impact, global impact, consumer impact.
0%
A fishery exceeding fishing quotas
0%
Both are estimated in advance by analysts.
0%
Future profits are uncertain.

What is the difference between Nomura and RBC's estimate for the Japanese yen/euro currency pair for the end of Q1 2018? (D)

0%
40 yen
0%
Both are estimated in advance by analysts.
0%
a)40 percentb)40 dollarsc)40 eurosd)40 yen
0%
Her mortgage payments and necessities are fixed

What impact will a tightening of the corporate spread most likely have on a company?`

0%
To respond quickly to changes in the currency markets.
0%
To know when specific economic data points are a positive or negative surprise.
0%
A tendency to expand the borrowing capacity of the company.
0%
Her mortgage payments and necessities are fixed

Here is the WACC function for US drug company Pfizer....What is the WACC?

0%
$11
0%
8.2%
0%
prices decline
0%
2.398%

Why does the yield curve naturally slope upwards?

0%
The large government bond market competes for investors attention via yields
0%
Median age of society
0%
To compensate leaders for the greater risk of long-term loans compared to short-term loans
0%
a) Canadab) Russiac) Indiad) Taiwan

Why do companies do IPOs?

0%
To respond quickly to changes in the currency markets.
0%
A 5% annual yield on an investment in 10-year U.S. government bonds
0%
The cash flow from equities can continue indefinitely while the cash flow from most bonds comes to an end.
0%
IPOs incentivize entrepreneurs to innovate as IPOs provide a way for entrepreneurs to monetize their work.

Company X was expected to have earnings per share of $0.52 for the upcoming quarter. On the day of the results, the company reported earnings per share of $0.What happened to the share price when the stock market opened?

0%
China's construction of....
0%
There is not enough information to tell.
0%
China's Aluminum Demand Weathers Real-Estate Slowdown so far
0%
They do not consistently presage turning points.

In the early 2016, the same Germany machinery company has interest from four prospective clients from emerging markets: Indonesia, Brazil, Russia, and South Africa..... (C)

0%
a)South Africab)Russiac)Indonesiad)Brazil
0%
Both countries are highly creditworthy.
0%
Nike is more expensive than the S&P 500 on both a P/E and dividend yield basis
0%
Investors do not after the calculation

What is the primary driver of the left-hand end of the yield curve?

0%
Her mortgage payments and necessities are fixed
0%
Central bank interest rates
0%
a) 3%b) 1%c) 2%d) 0%
0%
Future profits are uncertain.

What do the green bars at the bottom signify? (B)

0%
Both are estimated in advance by analysts.
0%
a)To strengthen the yen to foster consumption of luxury goodsb)To halt the vicious cycle of deflationc)To reduce inflation by increasing unemploymentd)To reign in GDP by reducing business confidence
0%
Both countries are highly creditworthy.
0%
a) High revenueb) Surplusc) Growthd) Deficit

Which of the following stocks is most sensitive to the movement of the overall stock?

0%
Hong Kong dollar against the U.S. dollar in 1997.
0%
Amazon
0%
Norway
0%
GDP

What is the primary reason for U.S. government bond yields to ripple through the bond market?

0%
Both are estimated in advance by analysts.
0%
The large government bond market competes for investors attention via yields
0%
a)40 percentb)40 dollarsc)40 eurosd)40 yen
0%
A stock's P/E ratio can remain above or below market average for extended periods.

Which of the following options is the best way for investors to manage currency risk? (D)

0%
Timeliness of release
0%
a)By investing purely in ver large stocks in their home marketb)By investing in pegged currenciesc)By vacationing each year in a country with a weak currencyd)By locking in forward rates for known foreign payments
0%
a)Surprise charges in interest rates, inflation, and tradeb)Surprise changes in interest rates, inflation, and goldc)Surprise changes in relative prices, trade, and goldd)Surprise changes in relative prices, inflation, and trade
0%
By locking in forward rates for known foreign payments.

Here is a chart displaying estimates of the initial jobless claims indicator, one of the main unemployment....

0%
260
0%
$11
0%
5.360
0%
The S&P 500

Which of the following lines is the best leading economic indicator?

0%
Timeliness of release
0%
By locking in forward rates for known foreign payments.
0%
a)Surprise charges in interest rates, inflation, and tradeb)Surprise changes in interest rates, inflation, and goldc)Surprise changes in relative prices, trade, and goldd)Surprise changes in relative prices, inflation, and trade
0%
PMI

Here is the output gap in the US in earlyWhat was likely the fed interest rate policy?

0%
The currency strengthens.
0%
a) 3%b) 1%c) 2%d) 0%
0%
To cut interest rates
0%
To build liquid FX reserves

Which yield curve is most likely linked to a booming economy

0%
B
0%
nonfarm payrolls
0%
GDP
0%
Coca-Cola because it has a higher market capitalization

Why would Jack Welch suggest putting all company plants on barges?

0%
To respond quickly to changes in the currency markets.
0%
Hong Kong dollar against the U.S. dollar in 1997.
0%
They do not consistently presage turning points.
0%
Corporate impact, global impact, consumer impact.

What generally happens when a central bank unexpectedly increases interest rates? (D)

0%
an IPO crystallizes the value of the manager-owners stake.
0%
a)The currency weakens, then strengthens. b)The currency strengthens, then weakens. c)The currency weakensd)The currency strengthens
0%
Corporate bond issuers go bankrupt more frequently then governments, as they do no have a tax base to fall back on in hard times
0%
A tendency to expand the borrowing capacity of the company.

Which economic indicator is most directly linked to unemployment?

0%
Norway
0%
Inflation
0%
Core PCE
0%
nonfarm payrolls

Imagine you are a Dutch diamond dealer who sources diamonds from south africa

0%
Core PCE
0%
Procter & Gamble
0%
EUR 4,717 more
0%
Minimal Change

What is the Federal Reserve's favorite inflation gauge?

0%
Coupon repayment
0%
To build liquid FX reserves
0%
40 yen
0%
Core PCE

Why do company manager-owners smile when they ring the stock exchange bell at their IPO?

0%
IPOs incentivize entrepreneurs to innovate as IPOs provide a way for entrepreneurs to monetize their work.
0%
an IPO crystallizes the value of the manager-owners stake.
0%
A stock's P/E ratio can remain above or below market average for extended periods.
0%
By locking in forward rates for known foreign payments.

The number at the bottom right of each supplier's box shows the portion of Boeing's total costs in the last year that went to that supplier...

0%
United Continental
0%
prices decline
0%
It went down
0%
a)United Statesb)Thailandc)Brazild)China

Imagine you are a Dutch diamond dealer who sources diamonds from South Africa...... (A)

0%
a)The currency weakens, then strengthens. b)The currency strengthens, then weakens. c)The currency weakensd)The currency strengthens
0%
To know when specific economic data points are a positive or negative surprise.
0%
a) Dollarb) Euroc) Reald) Yuan
0%
a) EUR 4,717 moreb) EUR 4,717 fewerc) ZAR 4,717 mored) ZAR 4,717 fewer

What quality of U.S. government bonds causes investors to buy them when market volatility rises? (C)

0%
Consumer spending accounts for two-thirds of the U.S. economy when the number of unemployed consumers rises, there is less consumer spending.
0%
a) US Government bonds are denominated in dollarsb) US Government bonds are stored in bank vaultsc) US Government bonds are considered low riskd) US Government bonds are underwritten by global taxpayers
0%
a)Surprise charges in interest rates, inflation, and tradeb)Surprise changes in interest rates, inflation, and goldc)Surprise changes in relative prices, trade, and goldd)Surprise changes in relative prices, inflation, and trade
0%
The large government bond market competes for investors attention via yields

What is one possible weakness of this peer approach to valuation?

0%
Her mortgage payments and necessities are fixed
0%
Both are estimated in advance by analysts.
0%
The estimated growth can be dramatically wrong.
0%
They do not consistently presage turning points.

What may be a problem of comparing the P/E of a stock to the P/E of the overall market?

0%
A tendency to expand the borrowing capacity of the company.
0%
The large government bond market competes for investors attention via yields
0%
A stock's P/E ratio can remain above or below market average for extended periods.
0%
Defines the industry or industries in which the company operates.

Why is fixed income called Fixed income?

0%
a)To strengthen the yen to foster consumption of luxury goodsb)To halt the vicious cycle of deflationc)To reduce inflation by increasing unemploymentd)To reign in GDP by reducing business confidence
0%
Because the repayment amounts and timings are fixed for ordinary bonds
0%
A 5% annual yield on an investment in 10-year U.S. government bonds
0%
Inaccurately because the scope of GDP measurements can change.

On June 23, 2016, the United Kingdom voted to leave the European Union...... (D)

0%
Consumer spending accounts for two-thirds of the U.S. economy when the number of unemployed consumers rises, there is less consumer spending.
0%
a)By investing purely in ver large stocks in their home marketb)By investing in pegged currenciesc)By vacationing each year in a country with a weak currencyd)By locking in forward rates for known foreign payments
0%
a)Surprise charges in interest rates, inflation, and tradeb)Surprise changes in interest rates, inflation, and goldc)Surprise changes in relative prices, trade, and goldd)Surprise changes in relative prices, inflation, and trade
0%
a)They are probably heavy importersb)Their CEOs probably voted to leave the EUc)Their CEOs probably voted to remaining the EUd)They are probably heavy exporters

By what mechanism do interest rates affect currency values? (C)

0%
a)High interest rates slow an economy and make it less attractive to investorsb)Changes in interest rates directly influence the value at which a currency is peggedc)Global investors are attracted by higher bond yields in high interest rate countriesd)High interest rates make the currency safer
0%
Global investors are attracted by higher bond yields in high interest rate countries.
0%
a)To respond quickly to changes in the currency marketsb) To avoid using any domestic currenciesc) To locate the cost base in the most favorable tax regimesd) To purchase materials for the plant more quickly
0%
A stock's P/E ratio can remain above or below market average for extended periods.

Using the chart given, how many NZD can you buy with 100 AUD?

0%
2.398%
0%
200%
0%
Inflation
0%
107.89

Which of the following is not an example of a failed peg?

0%
By locking in forward rates for known foreign payments.
0%
Her mortgage payments and necessities are fixed
0%
Hong Kong dollar against the U.S. dollar in 1997.
0%
Hong Kong dollar against the Macanese pataca

What is the median estimate for the number of Japanese yen per euro for calendar year 2020?

0%
126
0%
The large government bond market competes for investors attention via yields
0%
Core PCE
0%
To cut interest rates

At its peak at the end of 1999, Microsoft has a market cap of $600B. PC sales were booming and most PCs ran on Microsoft software.....

0%
Nonfarm payrolls go down, the PMI indicator goes DOWN, the housing starts goes down.
0%
The country has deflation. The bottom line is nominal growth and the top line is real growth.
0%
The decline in P/E ratio more than offset earning growth and this pushed the market cap down
0%
China's Aluminum Demand Weathers Real-Estate Slowdown so far

What is the primary goal of Abenomics? (B)

0%
a)To strengthen the yen to foster consumption of luxury goodsb)To halt the vicious cycle of deflationc)To reduce inflation by increasing unemploymentd)To reign in GDP by reducing business confidence
0%
a)40 percentb)40 dollarsc)40 eurosd)40 yen
0%
a)By investing purely in ver large stocks in their home marketb)By investing in pegged currenciesc)By vacationing each year in a country with a weak currencyd)By locking in forward rates for known foreign payments
0%
Her mortgage payments and necessities are fixed

In 1994, the Mexican peso declined against the US dollar during so-called "Tequila Crisis."....

0%
The change in postal Volumes
0%
Both countries had large dollar-denominated debts
0%
The large government bond market competes for investors attention via yields
0%
a)115b)163c)132d)126

Which of the following is the strongest driver of inflation?

0%
wartime activities
0%
Core PCE
0%
They do not consistently presage turning points.
0%
Earnings estimates

A rise in which of the following measures would typically send a government bond price up?

0%
United Continental
0%
Cut interest rates
0%
Creditworthiness
0%
Above expectations

How is enterprise value calculated?

0%
Both countries are highly creditworthy.
0%
Central bank interest rates
0%
Enterprise value = market cap - cash + debt
0%
Because the repayment amounts and timings are fixed for ordinary bonds

Why are equities volatile?

0%
because it has the right to tax the wealthiest population on earth
0%
Due to the residual nature of earnings
0%
Both countries are highly creditworthy.
0%
Defines the industry or industries in which the company operates.

Here is a chart from the ILBE function displaying US 10-year inflation expectations as of early 2017....

0%
0.0239% above
0%
The country has deflation. The bottom line is nominal growth and the top line is real growth.
0%
Procter & Gamble
0%
prices decline

Consider the formula GDP = C+I+G+(X-M). A country is undergoing a boom in consumption of domestic and foreign luxury goods. In one year, the dollar growth in imports is greater than the dollar growth in domestic consumption. Assuming nothing else has changed, what happened to GDP?

0%
40 yen
0%
It went down
0%
$100 million
0%
Timeliness of release

Here is the capital structure of Microsoft. What part of the $42.03 share price (to the nearest dollar) is represented by cash?

0%
Making the assumptions upon which the project future performance
0%
PMI
0%
200%
0%
$11

Which would you prefer?

0%
A surprise change in inflation expectations
0%
A 5% annual yield on an investment in 10-year U.S. government bonds
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Surprise changes in interest rates, inflation, and trade
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To respond quickly to changes in the currency markets.

Investors who fear rising inflation may buy Treasury Inflation Protected Securities (TIPS). How do TIPS shield lenders from inflation?

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By locking in forward rates for known foreign payments.
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a)40 percentb)40 dollarsc)40 eurosd)40 yen
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By compensating investors for inflation
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Both countries had large dollar-denominated debts

The World Equity index function shown contains two valuation metrics for the S&PThe Nike description page contain the same two valuation metrics.

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Nike is more expensive than the S&P 500 on both a P/E and dividend yield basis
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Defines the industry or industries in which the company operates.
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United Continental
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Nonfarm payrolls go down, the PMI indicator goes DOWN, the housing starts goes down.

Which of the following is the biggest pitfall of economic indicators?

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A fishery exceeding fishing quotas
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U.S. Stocks rally on Fed's Surprise reduction of Interest Rate.
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They do not consistently presage turning points.
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Hong Kong dollar against the U.S. dollar in 1997.

Why is the release of GDP statistics less interesting to investors than the release of other economic indicators?

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Surprise changes in interest rates, inflation, and trade
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Making the assumptions upon which the project future performance
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Because GDP statistics are released well after other economic indicators.
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Future profits are uncertain.

in 1999, James Glassman and Kevin Hassett published a book called "Dow 36,000"....

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The sum of the share prices of all 30 Dow Jones Members will triple
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To know when specific economic data points are a positive or negative surprise.
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Both countries had large dollar-denominated debts
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The large government bond market competes for investors attention via yields

Here is the vicious deflationary cycle. What step connects the lower left gray arrow to the upper right blue arrow?

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prices decline
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40 yen
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Creditworthiness
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MTU Aero Engines