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Question 1 of 10
1. Question
Which of the following statement(s) is (are) true about Cyclical stocks?
I. Cyclical stocks are investments in industries that are heavily affected by an economic up- or downswing.
II. Cyclical stocks deal in assets that are more immune to the effects of an economic cycle
III. Cyclical stocks are in industries like food and energy — the necessities of life.
IV. When consumers cut back their expenditures, it is in cyclical industries.Correct
Cyclical stocks are investments in industries that are heavily affected by an economic up- or downswing. Examples of cyclical industries are the auto industry, construction, and retail. When consumers cut back their expenditures, it is in cyclical industries like these.
Incorrect
Cyclical stocks are investments in industries that are heavily affected by an economic up- or downswing. Examples of cyclical industries are the auto industry, construction, and retail. When consumers cut back their expenditures, it is in cyclical industries like these.
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Question 2 of 10
2. Question
Which of the following statement(s) is (are) true about the Federal Reserve System?
I. The Federal Reserve System works as the central bank of the United States.
II. The Federal Reserve System is comprised of a network of 24 regional Federal Reserve banks, 12 branches, as well as many member banks.
III. The Federal Reserve Board supervises this network and sets and executes monetary policy for the country.
IV. The Federal Reserve System controls the supply of credit and money.Correct
The Federal Reserve System (or the Fed, as it is commonly known) works as the central bank of the United States. It is comprised of a network of 12 regional Federal Reserve banks, 24 branches, as well as many member banks. The Federal Reserve Board supervises this network and sets and executes monetary policy for the country. The Fed controls the supply of credit and money;
Incorrect
The Federal Reserve System (or the Fed, as it is commonly known) works as the central bank of the United States. It is comprised of a network of 12 regional Federal Reserve banks, 24 branches, as well as many member banks. The Federal Reserve Board supervises this network and sets and executes monetary policy for the country. The Fed controls the supply of credit and money;
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Question 3 of 10
3. Question
Money supply is broken into categories named-
I. M1
II. M2
III. L1
IV. LCorrect
Money supply is broken into categories named M1, M2, M3, and L.
Incorrect
Money supply is broken into categories named M1, M2, M3, and L.
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Question 4 of 10
4. Question
Which of the following statement(s) is (are) true about M3 money supply?
I. M2, plus time deposits >$100k
II. M3 is comprised of Institutional money market accounts
III. M3 is comprised of Term repurchase agreements
IV. M3 is comprised of U.S.-held term EurodollarsCorrect
M3: M2, plus time deposits >$100k, institutional money market accounts, and term repurchase agreements.
Incorrect
M3: M2, plus time deposits >$100k, institutional money market accounts, and term repurchase agreements.
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Question 5 of 10
5. Question
Which of the following statement(s) is (are) true about M1 money supply?
I. M1 is the most liquid kind of money supply.
II. M1 is comprised of cash in circulation.
III. M1 is comprised of demand deposits, and traveler’s checks.
IV. M1 is comprised of T-Bills, savings bonds, commercial paper, banker’s acceptances.Correct
M1 is the most liquid kind of money supply. M1 is comprised of cash in circulation, demand deposits, and traveler’s checks.
Incorrect
M1 is the most liquid kind of money supply. M1 is comprised of cash in circulation, demand deposits, and traveler’s checks.
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Question 6 of 10
6. Question
The Federal Reserve Bank of New York buys and sells U.S. Treasury securities in open market operations using-
Correct
The Federal Reserve Bank of New York buys and sells U.S. Treasury securities in open market operations using repurchase agreements.
Incorrect
The Federal Reserve Bank of New York buys and sells U.S. Treasury securities in open market operations using repurchase agreements.
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Question 7 of 10
7. Question
Which of the following does the Federal Reserve uses to guide the economy through its business cycles?
I. The Fed Funds Rate
II. Reserve requirements
III. The discount rate
IV. Open market operationsCorrect
The Federal Reserve uses the Fed Funds Rate, reserve requirements, the discount rate, and open market operations to guide the economy through its business cycles.
Incorrect
The Federal Reserve uses the Fed Funds Rate, reserve requirements, the discount rate, and open market operations to guide the economy through its business cycles.
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Question 8 of 10
8. Question
By which of the following does the Fed’s open market operations supervised by?
Correct
The Fed’s open market operations are supervised by the Federal Open Market Committee (FOMC).
Incorrect
The Fed’s open market operations are supervised by the Federal Open Market Committee (FOMC).
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Question 9 of 10
9. Question
Jessy Truman has a money market account. Within the market, this falls under:
Correct
M2: M1, plus time deposits < $100k, individual money market accounts, overnight repurchase agreements, and overnight Eurodollars.
Incorrect
M2: M1, plus time deposits < $100k, individual money market accounts, overnight repurchase agreements, and overnight Eurodollars.
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Question 10 of 10
10. Question
When it comes to impact by the business cycle, stock in restaurants is considered-
Correct
Defensive stocks deal in assets that are more immune to the effects of an economic cycle. These stocks are in industries like food and energy — the necessities of life.
Incorrect
Defensive stocks deal in assets that are more immune to the effects of an economic cycle. These stocks are in industries like food and energy — the necessities of life.