Econ Final

Question 1

A period of persistently rising price levels

Answer 1

Inflation

Question 2

Bonds issued by the US treasury issued with a 6% coupon, paying semi-annually with a 10-year maturity. How many coupon payments will it have?

Answer 2

20

Question 3

The data that the FOMC reviews is compiled in something called the

Answer 3

Beige Book

Question 4

A company with a MarketCap of 150B would be categorized as a

Answer 4

Large Cap Stock

Question 5

Lis 3 Stock Market Indices

Answer 5

S&P 500, Dow Jones Industrial Average, Nasdaq Composite, Russell 2000, FTSE 100 Index

Question 6

The largest US private sector employer is

Answer 6

Walmart

Question 7

When Federal Budget Outlays are larger than the actual receipts, this will result in a

Answer 7

Budget Deficit

Question 8

Fiscal Policy is handled by

Answer 8

The president and congress

Question 9

The CEO of JP Morgan is

Answer 9

Jamie Dimon

Question 10

The FOMC meets no less than how many times per year?

Answer 10

8

Question 11

Depository Institutions/Commercial banks must keep a percentage of their deposits in reserve at the Federal Reserve for risk purpose (T/F)

Answer 11

True

Question 12

The VIX is also known as the

Answer 12

Fear Index

Question 13

The Jobs report, PPI, and Consumer Confidence are all

Answer 13

Lagging indicators

Question 14

If the FED increases the rates by 25 basis points, that would be equivalent to

Answer 14

0.25%

Question 15

List the 3 Rating agencies that provide corporate credit ratings

Answer 15

1. S&P 2. Moody’s 3. Fitch

Question 16

A period

Question 17

Where the inflation rate is 50% or higher per month and the economy grinds to a halt

Answer 17

Hyperinflation

Question 18

If 3,000 is invested in a certificate of Deposit paying 4% annually, what will the values be when it matures in 5 years?

Answer 18

$3,649.96

Question 19

The CPI & PCE indices are indicators of

Answer 19

Inflation

Question 20

The money that banks make when lending while paying interest on deposits is called

Answer 20

Net Interest Income

Question 21

Your grandmother has given you a gift of 5,000 for graduation. How much did she invest 4 years ago if she earned 4% compounded semi-annually?

Answer 21

$4,267.45

Question 22

A government or central bank action that aims to encourage economic growth and activity, often to prevent a recession, is

Answer 22

Lowering interest rates, encouraging spending and stimulating economic growth

Question 23

The federal reserve has a dual mandate to _______ and _______. The actions they take to accomplish is known as _______ Policy.

Answer 23

Monitor Inflation, Maximize employment, Monetary

Question 24

Interest expense, COGS, Gross revenue can be found on which financial statement

Answer 24

Income statement

Question 25

Yield to maturity, coupon, current yield, maturity date are all components of

Answer 25

Corporate bonds

Question 26

A company's capital structure can be made up of:

Answer 26

Debt, Equity, Cash

Question 27

Define Duration

Answer 27

A measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates.

Question 28

List the cities where there is a Federal Reserve Branch:

Answer 28

1. New York 2. San Francisco 2. St. Louis 4. Boston 5. Richmond 6. Philly 7. Cleveland 8. Dallas 9. Atlanta 10. Chicago 11. Minneapolis 12. Kansas City

Question 29

Asia limited has annual revenues of $4B. It is publicly traded with 50,000,000 shares outstanding and a stock price of $142. What is its market capitalization?

Answer 29

7,100,000,000

Question 30

Define GDP and provide the equation.

Answer 30

GDP = I + C + G + NX GDP measures the cost of all final goods and services produced within a country within a given period of time.

Question 31

List 3 Money Market instruments

Answer 31

1. Treasury Bills 2. CD's 3. Promissory Notes

Question 32

List 3 US companies with a market cap of over $3T

Answer 32

NVIDIA, Microsoft, Alphabet, Apply