Economic Indicators Quiz

Which of the following is a leading economic indicator?

• Consumer Price Index (CPI)

• Unemployment rate

• Initial jobless claims

• Gross Domestic Product (GDP)

An inverted yield curve is typically a signal of:

• Economic expansion

• A bullish stock market

• A potential recession

• Rising inflation

Which monetary policy tool is most frequently used by the Federal Reserve?

• Changing the discount rate

• Open market operations

• Changing the reserve requirement

• Quantitative easing

If interest rates are expected to rise, which of the following investments is likely to perform best?

• Long-term bonds

• Short-term bonds

• Growth stocks

• Real estate investment trusts (REITs)

What does the Producer Price Index (PPI) measure?

• Retail price changes

• Wholesale price changes

• Employment rates

• Industrial output

A rising dollar typically has which effect on U.S. exports?

• Increases demand for exports

• Decreases demand for exports

• No effect on exports

• Increases U.S. trade deficit

What is the primary goal of fiscal policy?

• Control inflation

• Manage unemployment and economic growth

• Stabilize interest rates

• Influence the money supply

Which of the following is an example of a cyclical industry?

• Utilities

• Technology

• Healthcare

• Consumer staples

During periods of high inflation, which asset class tends to perform poorly?

• Stocks

• Commodities

• Real estate

• Long-term bonds

What is the primary function of the Federal Open Market Committee (FOMC)?

• Regulate banks

• Set the federal funds rate

• Implement fiscal policy

• Issue government bonds