投资学题库 2.docx

1、投资学题库 2Chapter17Macroeconomic and industry Analysis1.A top down analysis of a firm starts with _.D.the global economy2.An example of a highly cyclical industry is _.A.the automobile industry3.Demand-side economics is concerned with _.A.government spending and tax levelsB.monetary policyC.fiscal poli

2、cyE.A, B, and C4.The most widely used monetary tool is _.C.open market operations5.The real, or inflation-adjusted, exchange rate, isC.the purchasing power ratio.6.The normal range of price-earnings ratios for the S&P 500 Index isD.between 12 and 257.Monetary policy is determined byC.the board of Go

3、vernors of the Federal Reserve System.8.A trough is _.B.a transition from a contraction in the business cycle to the start of an expansion9.A peak is _.A.a transition from an expansion in the business cycle to the start of a contraction10.If the economy is growing, firms with high operating leverage

4、 will experience _.A.higher increases in profits than firms with low operating leverage.11.If the economy is shrinking, firms with high operating leverage will experience _.A.higher decreases in profits than firms with low operating leverage.12.If the economy is growing, firms with low operating lev

5、erage will experience _.C.smaller increases in profits than firms with high operating leverage.13.If the economy is shrinking, firms with low operating leverage will experience _.C.smaller decreases in profits than firms with high operating leverage.14.Industrial production refers to _.C.the total m

6、anufacturing output in the economy.15.GDP refers to _.D.the total production of goods and services in the economy16.A rapidly growing GDP indicates a(n) _ economy with _ opportunity for a firm to increase sales.D.expanding; ample17.A declining GDP indicates a(n) _ economy with _ opportunity for a fi

7、rm to increase sales.A.stagnant; little18.The average duration of unemployment and changes in the consumer price index for services are _.C.lagging economic indicators19.A firm in an industry that is very sensitive to the business cycle will likely have a stock beta _.A.greater than 1.020.If the eco

8、nomy were going into a recession, an attractive industry to invest in would be the _ industry.B.medical services21.The stock price index and contracts and new orders for nondefense capital goods areA.leading economic indicators.22.A firm in the early stages of the industry life cycle will likely hav

9、e _.B.high risk.C.rapid growthE.B and C23.Assume the U.S. government was to decide to increase the budget deficit. This action will most likely cause _ to increaseA.interest ratesB.government borrowingD.both A and B24.Assume the U.S. government was to decide to decrease the budget deficit. This acti

10、on will most likely cause _ to decreaseA.interest ratesB.government borrowingD.both A and B25.Assume that the Federal Reserve decreases the money supply. This action will cause _ to decrease.C.investment in the economy26.If the currency of your country is depreciating, the result should be to _ expo

11、rts and to _ imports.B.stimulate, discourage27.If the currency of your country is appreciating, the result should be to _ exports and to _ imports.C.discourage, stimulate28.Increases in the money supply will cause demand for investment and consumption goods to _ in the short run and cause prices to

12、_ in the long run.A.increase, increase29.The North American Industry Classification System (NAICS)A.are for firms that operate in the NAFTA region.B.group firms by industry.D.A and B.30.If interest rates increase, business investment expenditures are likely to _ and consumer durable expenditures are

13、 likely to _.D.decrease, decrease31.Fiscal policy generally has a _ direct impact than monetary policy on the economy, and the formulation and implementation of fiscal policy is _ than that of monetary policy.B.more, slower32.Fiscal policy is difficult to implement quickly becauseA.it requires polit

14、ical negotiations.B.much of government spending is nondiscretionary and cannot be changed.D.A and B.33.InflationA.is the rate at which the general level of prices is increasing.B.rates are high when the economy is considered to be overheated.D.A and B.Two firms, A and B, both produce widgets. The pr

15、ice of widgets is $1 each. Firm A has total fixed costs of $500,000 and variable costs of 50 cents per widget. Firm B has total fixed costs of $240,000 and variable costs of 75 cents per widget. The corporate tax rate is 40%. If the economy is strong, each firm will sell 1,200,000 widgets. If the ec

16、onomy enters a recession, each firm will sell 1,100,000 widgets.34.If the economy enters a recession, the after-tax profit of Firm A will be _.C.$30,00035.If the economy enters a recession, the after-tax profit of Firm B will be _.E.none of the above36.If the economy is strong, the after-tax profit

17、of Firm A will be _.D.$60,00037.If the economy is strong, the after-tax profit of Firm B will be _.C.$36,00038.Calculate firm As degree of operating leverage.A.11.039.Calculate firm Bs degree of operating leverage.C.29.8640.Classifying firms into groups, such as _ provides an alternative to the indu

18、stry life cycle.A.slow-growersB.stalwartsD.A and B41.Supply-side economists wishing to stimulate the economy are most likely to recommendD.a decrease in the tax rate.42.Which of the following are not examples of defensive industries?B.durable goods producers.43.Which of the following are examples of

19、 defensive industries?A.food producers.C.pharmaceutical firms.D.public utilitiesE.A, C and D44._ is a proposition that a strong proponent of supply side economics would most likely stress.B.Higher marginal tax rates promote economic inefficiency and thereby retard aggregate output as they encourage

20、investors to undertake low productivity projects with substantial tax shelter benefits45.The industry life cycle is described by which of the following stage(s)?A.start-up.B.consolidation.D.A and B.46.In the start-up stage of the industry life cycleA.it is difficult to predict which firms will succe

21、ed and which firms will fail.B.industry growth is very rapid.D.A and B.47.In the consolidation stage of the industry life-cycleC.the performance of firms will more closely track the performance of the overall industry.48.In the maturity stage of the industry life cycleA.the product has reached full

22、potential.B.profit margins are narrower.C.producers are forced to compete on price to a greater extent.E.A, B, and C.49.In the decline stage of the industry life cycleA.the product may have reached obsolescence.B.the industry will grow at a rate less than the overall economy.C.the industry may exper

23、ience negative growth.E.A, B, and C.50.A variety of factors relating to industry structure affect the performance of the firm, includingA.threat of entry.B.rivalry between existing competitors.E.A and B.51.The process of estimating the dividends and earnings that can be expected from the firm based

24、on determinants of value is calledD.fundamental analysis.52.The emerging market exhibiting the highest growth in real GDP in 2007 wasA.China53.The emerging stock market exhibiting the highest U.S. dollar return in 2007 wasA.China54.The life cycle stage in which industry leaders are likely to emerge

25、is theC.consolidation stage.55.Investment manager Peter Lynch refers to firms that are in bankruptcy or soon might be asE.turnarounds.56.A top-down analysis of a firms prospects starts withD.an assessment of the broad economic environment.57.Over the period 1999-2006, which of the following countrie

26、s had a change in its real exchange rate that was favorable for U.S. consumers who want to buy its goods?E.Japan58.Over the period 1999-2006, which of the following countries had a change in its real exchange rate that was most unfavorable for U.S. consumers who want to buy its goods?A.Canada59.In r

27、ecent years, P/E multiples haveB.risen dramatically.60.In recent years, P/E multiples for S&P 500 companies haveD.ranged from 12 to 25.61.The industry with the highest ROE in 2007 wasD.iron/steel.62.The industry with the lowest ROE in 2007 wasE.airlines.63.The industry with the lowest return in 2007

28、 wasA.home construction.64.The industry with the highest return in 2007 wasB.oil equipment.65.Investors can _ invest in an industry with the highest expected return by purchasing _.B.not; industry-specific iShares66.Which of the following are key economic statistics that are used to describe the sta

29、te of the macroeconomy? I) gross domestic productII) the unemployment rateIII) inflationIV) consumer sentimentV) the budget deficitE.I, II, III, IV, and V67.An example of a positive demand shock isE.a decrease in tax rates.68.An example of a negative demand shock isA.a decrease in the money supply.B

30、.a decrease in government spending.E.A and B.69.During which stage of the industry life cycle would a firm experience stable growth in sales?A.Consolidation70.The emerging stock market exhibiting the highest local currency return in 2007 wasB.ChinaE.China71.Sector rotationC.is shifting the portfolio more heavily toward an industry or sector that is expected to perform well i