ch12
Student: ___________________________________________________________________________
1. A top-down analysis of a firm's prospects starts with an analysis of the ____.
A. firm's position in its industry
B. U.S. economy or even the global economy
C. industry
D. specific firm under consideration
2.In 1980 the dollar-yen exchange rate was about $.0045. In 2012 the yen-dollar exchange rate was about
80 yen per dollar. A Japane producer would have had to increa the dollar price of a good sold in the
United States by approximately _____ to maintain the same yen price in 2012.
怀孕能补牙吗
A. 178%
B. 79.5%
C. 265.4%
D. 36%
3.An increa in the value of the yen against the U.S. dollar can cau the Japane automaker Toyota to
either _____________ on its U.S. sales.
A. lo market share or reduce its profit margin
B. gain market share or reduce its profit margin
C. lo market share or increa its profit margin
D. gain market share or increa its profit margin
4.You estimate that the prent value of a firm's cash flow is valued at $15 million. The break up value
of the firm if you were to ll the major asts and divisions parately would be $20 million. This is an example of what Peter Lynch would call ___________.
A. a stalwart
B. slow growth
C. a star
D. an ast play
5.Between 1999 and 2010, the purchasing power of the U.S. dollar incread relative to the purchasing
power of _______.
A. the United Kingdom
B. the Euro
C. Switzerland
D. Canada
6.If you believe the economy is about to go into a recession, you might change your ast allocation by
lling _______ and buying ______.
A. growth stocks; long-term bonds
B. long-term bonds; growth stocks
C. defensive stocks; growth stocks
D. defensive stocks; long-term bonds
7.The yield curve spread between the 10-year T-bond yield and the federal funds rate is a _______
economic indicator.
A. leading
B. lagging
C. coincident
D. mixed
8.The Conference Board's Consumer Confidence Index is relead ______.
A. daily
B. weekly
C. monthly
D. quarterly
9.You can earn abnormal returns on your investments via macro forecasting ______.
A. if you can forecast the economy at all
B. if you can forecast the economy as well as the average forecaster
C. if you can forecast the economy better than the average forecaster
D. only if you can forecast the economy with perfect accuracy
10.Which of the following industries would most analysts classify as mature?
A. Internet rvice providers
B. Biotechnology
C. Wireless communication
D. Auto manufacturing
11.Which one of the following stocks reprents industries with below-average nsitivity to the state of the
economy?
A. Financials
B. Technology
C. Food and beverage
D. Cyclicals
12.The most widely ud monetary policy tool is _________.
A. altering the discount rate
海皮岛
B. altering rerve requirements
C. open market operations
D. increasing the budget deficit
13.Which one of the following is the ratio of actual output from factories to potential output from factories?
A. Capacity utilizationrate
B. Participation rate
C. Durable goods orders rate
D. Industrial production rate
14.According to __________ economists, the growth of the U.S. economy in the 1980s can be attributed to
lower marginal tax rates, which improved the incentives for people to work.
A. Keynesian
B. monetarist
C. supply-side
D. demand-side
15.The market value of all goods and rvices produced during a given time period is called ______.
A. GDP
B. industrial production
C. capacity utilization
D. factory orders
16.A big increa in government spending is an example of a _________.
A. positive demand shock
B. positive supply shock
C. negative demand shock
D. negative supply shock
17.GDP refers to _________.
A. the amount of personal disposable income in the economy
B. the difference between government spending and government revenues
C. the total manufacturing output in the economy
D. the total production of goods and rvices in the economy
18.Portfolio manager Peter Lynch would classify Coca-Cola as _________.
A. an ast play
B. a slow grower
C. a stalwart
D. a turnaround
19.Attempting to forecast future earnings and dividends is consistent with which of the following approaches
to curities analysis?
A. Technical analysis
B. Fundamental analysis
C. Both technical analysis and fundamental analysis
D. Indexing
20.The analysis of the determinants of firm value is called _____________.
A. fundamental analysis
B. technical analysis
C. momentum analysis
D. indexing
21.Which of the following companies is the best example of a turnaround?
A. Coca-Cola
B. Microsoft
C. ExxonMobil
D. Kmart
太空游22.Inflation is caud by ________________.党员宗旨
A. unions
B. rapid growth of the money supply
土窑洞C. excess supply
D. low rates of capacity utilization
23.Everything el equal, if you expect a larger interest rate increa than other market participants, you
should _________.
A. buy long-term bonds
B. buy short-term bonds
C. buy common stocks
D. buy preferred stocks
24.To obtain an approximate estimate of the real interest rate, one must _________ the __________ the
nominal risk-free rate.
A. add; default premium to
B. subtract; default premium from
C. add; expected inflation to
D. subtract; expected inflation from
25.Which of the following would not be considered a supply shock?
A. A change in the price of imported oil
B. Frost damage to the orange crop
C. A change in the level of education of the average worker
D. An increa in the level of government spending
26.If economic conditions are such that very slow growth is expected in the foreeable future, one would
汽车磨合want to invest in industries with __________ nsitivity to economic conditions.
A. below-average
B. average
C. above-average
D. Since growth is expected to be slow, nsitivity to economic conditions is not an issue.
27.Which of the following is not an example of fiscal policy?
A. Social Security spending
B. Medicare spending
C. Fed purchas of Treasury curities
D. Changes in the tax rate
消防维保合同
28.Supply-side economics tends to focus on _______________.
A. government spending
B. price controls
C. monetary policy
D. increasing productive capacity
29.Which one of the following describes the amount by which government spending exceeds government
revenues?
A. Balance of trade
B. Budget deficit
C. Gross domestic product
D. Output gap
30.Which one of the following is probably the most direct and immediate way to stimulate or slow the
economy, although it is not very uful for fine-tuning economic performance?
A. Fiscal policy
B. Monetary policy
C. Supply-side policy
D. Rising minimum wages
31.In macroeconomic terms, an increa in the price of imported oil or a decrea in the availability of oil is
an example of a _________.
A. demand shock
B. supply shock
C. monetary shock
D. refinery shock
32.______________ in interest rates are associated with stock market declines.
A. Anticipated increas
B. Unanticipated increas
C. Anticipated decreas
D. Unanticipated decreas
33.The average duration of unemployment is _________.
A. a leading economic indicator
B. a coincidental economic indicator
C. a lagging economic indicator
D. both a coincidental indicator and a lagging indicator
34.The ratio of the purchasing power of two economies is termed the _______.
A. balance of trade
B. real exchange rate
C. real interest rate
D. nominal exchange rate
35.Everything el equal, an increa in the government budget deficit would:
I. Increa the government's demand for funds
II. Shift the demand curve for funds to the left
III. Increa the interest rate in the economy
A. II only
B. I and II only
C. I and III only
D. I, II, and III
36.Which of the following affects a firm's nsitivity of its earnings to the business cycle?
I. Financial leverage
II. Operating leverage
III. Type of product
羧甲司坦片说明书A. II only
B. I and II only
C. I and III only
D. I, II, and III
37.Which of the following describes the rate at which your ability to purcha grows while you hold an
interest-earning investment?
A. The nominal exchange rate
B. The nominal interest rate
C. The real exchange rate
D. The real interest rate
38.An example of a highly cyclical industry is the _________.
A. automobile industry
B. tobacco industry
C. pharmaceutical industry
D. utility industry
39.The stock price index and contracts and orders for nondefen capital goods are _________.
A. leading economic indicators
B. coincidental economic indicators
C. lagging economic indicators
D. leading and coincidental indicators, respectively
40.Which one of the following is not a demand shock?
A. Increa in government spending
B. Increas in the money supply
C. Reductions in consumer spending
D. Improvements in education of U.S. workers
41.Which one of the following is not a U.S. supply shock?
A. Unions force an increa in national wage rates.
B. The oil supply from the Middle East drops 30%.
C. Extended droughts reduce U.S. food production 25%.
D. Chine purchas of U.S. exports increa.
42.Pharmaceuticals, food, and other necessities would be good performers during the ____ stage of the
business cycle.
A. peak
B. contraction
C. trough
D. expansion
