Series 65 Test
All of the following are utilized by the “FED” (Federal Reserve Board) to influence the U.S. economy, and specifically, the money supply EXCEPT:
raising or reducing the discount rate
raising or reducing the reserve requirements for commercial banks
raising or reducing the prime rate
purchasing and selling U.S. Treasury securities in the open market
Which of the following is TRUE of a business cycle pattern?
I.the pattern is impacted by Gross Domestic Product (GDP)
II.just prior to a trough, the economy is in an expansionary phase
III.depression is defined as GDP declining for at least eight consecutive quarters
IV.recession is defined as GDP declining for at least four consecutive quarters
I., II., and IV
I. only
I., III., and IV.
I. and III.
A business cycle trough is characterized by all of the following EXCEPT:
all of the above are characteristics of a business cycle trough
a gradual transition for the Gross Domestic Product (GDP) growth rate from a negative to a positive
a positive forward outlook for consumer spending to increase
a moderate rate of inflation
Which of the following are TRUE of inflation?
I.as inflation increases, bond prices increase, and interest rates fall
II.inflation is characterized as a general economic price increase as measured by an index such as the consumer price index (CPI)
III.excessive demand is one contributing cause of inflation
IV.inflation inertia occurs when the inflation rate is seen to be immediately impacted by changes in the economy
I., III., and IV.
II. and IV.
II. and III.
I., II., and III.