Stock & Bond Test 1

Top-down approach to Security Analysis includes all of the following except:

• Economic analysis

• Technical Analysis

• Functional Analysis

• Fundamental Analysis

Which analysis method is primarily concerned with historical price patterns and trends?

• Technical Analysis
• Quantitative Analysis
• Sentiment Analysis
• Fundamental Analysis

GDP can be measured two ways, one method is the income approach and the other is

• market value approach
• cost approach
• expenditure approach
• production approach

•  Real GDP = Nominal GDP - __________

• Tax adjustments
• Interest rate changes
• Inflation

• Government spending

How does inflation affect the stock market?

• Inflation leads to increased stock prices due to higher consumer spending.
• Inflation has no impact on the stock market performance.
• Inflation generally has a negative effect on the stock market due to higher interest rates and reduced consumer spending.
• Inflation causes stock prices to stabilize and remain unchanged.

Economic indicators during a recession/ contraction include which of the following?

• Higher consumer confidence
• Increasing wages
• Rising stock market
• Rising unemployment, declining GDP, decreased consumer spending, lower industrial production.

Product lifecycle includes:

• Debut, Surge, Stability, Fade
• Start, Rise, Plateau, Fall
• Introduction, Growth, Maturity, Decline
• Launch, Expansion, Peak, Withdrawal

Which industry stage is characterized by a reduction of the growth rate in the economy usually less than the rate of the overall economy.

• Startup stage
• Maturity stage
• Decline stage
• Growth stage

Porters five forces includes all of the following except:

• Buyer power
• Supplier power
• Market competition
• Government regulations

This financial statement provides a summary of the firm’s cash flow and other events that caused changes in its cash position.

• Cash Flow Statement
• Statement of Changes in Equity
• Balance Sheet
• Income Statement