FIN 300 EXAM 2 CONCEPTUAL QUESTIONS WITH ALL
CORRECT & VERIFIED ANSWERS/ALREADY GRADED A+
(UPDATED TO PASS)
1. If interest rates increase, business investment expen- decrease;
decrease
ditures are likely to blank and
consumer durable expenditures are likely to
blank.
2. If you believe the economy is about to go into a reces- growth
stocks; LT bonds
sion, you might change your asset allocation by selling
blank and buying blank.
3. Which one of the following stocks represents food and beverage
indus- tries with below-average sensitivity to
the state of the economy?
4. The market value of all final goods and GDP
services pro- duced within the borders of a
country during a given period is called
blank.
5. A big increase in government spending is an example positive
demand shock
of a blank.
6. GDP refers to the blank. total production of
goods and services in
the econo- my
7. Attempting to forecast future earnings and dividends fundamental
analysis
is consistent with which of the following
approaches to securities analysis?
- Technical analysis
- Fundamental analysis
1/
51
, FIN 300 EXAM 2 CONCEPTUAL QUESTIONS WITH ALL
CORRECT & VERIFIED ANSWERS/ALREADY GRADED A+
(UPDATED
- Both TO analysis
technical PASS) and fundamental analysis
- Indexing
8. The analysis of the determinants of firm value is called fundamental
analysis
blank.
2/
51
, FIN 300 EXAM 2 CONCEPTUAL QUESTIONS WITH ALL
CORRECT & VERIFIED ANSWERS/ALREADY GRADED A+
(UPDATED TO PASS)
9. Everything else equal, if you expect a larger short-term bonds
inter- est rate increase than other market
participants, you should buy blank.
- long-term bonds
- short-term bonds
- common stocks
- preferred stocks
10. If economic conditions are such that a below average
recession is expected in the foreseeable
future, one would want to invest in
industries with blank
sensitivity to economic conditions.
unanticipated
11. blank in interest rates are increases
associated with stock market declines.
12. Which of the following affects a firm's sensitivity of its 1, 2, 3
earnings to the business cycle?
Financial leverage
Operating leverage
Type of product
13. Which of the following describes the rate at perform
which your ability to purchase grows while ers
you hold an in- terest-earning investment? during
the
14. An example of a highly cyclical industry is
the blank stage
blank. of the
business
15. Pharmaceuticals, food, and other cycle.
necessities would be relatively good
3/
51
, FIN 300 EXAM 2 CONCEPTUAL QUESTIONS WITH ALL
CORRECT & VERIFIED ANSWERS/ALREADY GRADED A+
the real (UPDATED
interest rate TO PASS)
automobile industry
contraction
4/
51
CORRECT & VERIFIED ANSWERS/ALREADY GRADED A+
(UPDATED TO PASS)
1. If interest rates increase, business investment expen- decrease;
decrease
ditures are likely to blank and
consumer durable expenditures are likely to
blank.
2. If you believe the economy is about to go into a reces- growth
stocks; LT bonds
sion, you might change your asset allocation by selling
blank and buying blank.
3. Which one of the following stocks represents food and beverage
indus- tries with below-average sensitivity to
the state of the economy?
4. The market value of all final goods and GDP
services pro- duced within the borders of a
country during a given period is called
blank.
5. A big increase in government spending is an example positive
demand shock
of a blank.
6. GDP refers to the blank. total production of
goods and services in
the econo- my
7. Attempting to forecast future earnings and dividends fundamental
analysis
is consistent with which of the following
approaches to securities analysis?
- Technical analysis
- Fundamental analysis
1/
51
, FIN 300 EXAM 2 CONCEPTUAL QUESTIONS WITH ALL
CORRECT & VERIFIED ANSWERS/ALREADY GRADED A+
(UPDATED
- Both TO analysis
technical PASS) and fundamental analysis
- Indexing
8. The analysis of the determinants of firm value is called fundamental
analysis
blank.
2/
51
, FIN 300 EXAM 2 CONCEPTUAL QUESTIONS WITH ALL
CORRECT & VERIFIED ANSWERS/ALREADY GRADED A+
(UPDATED TO PASS)
9. Everything else equal, if you expect a larger short-term bonds
inter- est rate increase than other market
participants, you should buy blank.
- long-term bonds
- short-term bonds
- common stocks
- preferred stocks
10. If economic conditions are such that a below average
recession is expected in the foreseeable
future, one would want to invest in
industries with blank
sensitivity to economic conditions.
unanticipated
11. blank in interest rates are increases
associated with stock market declines.
12. Which of the following affects a firm's sensitivity of its 1, 2, 3
earnings to the business cycle?
Financial leverage
Operating leverage
Type of product
13. Which of the following describes the rate at perform
which your ability to purchase grows while ers
you hold an in- terest-earning investment? during
the
14. An example of a highly cyclical industry is
the blank stage
blank. of the
business
15. Pharmaceuticals, food, and other cycle.
necessities would be relatively good
3/
51
, FIN 300 EXAM 2 CONCEPTUAL QUESTIONS WITH ALL
CORRECT & VERIFIED ANSWERS/ALREADY GRADED A+
the real (UPDATED
interest rate TO PASS)
automobile industry
contraction
4/
51
