Exam 12: Macroeconomic and Industry Analysis

An analyst starts by examining the broad economic environment and then considers the implications of the economy on the industry in which the firm operates.Finally,the firm's position within the industry is examined.This is called __________ analysis.

The ratio of the purchasing power of two economies is termed the _______.

The most widely used monetary policy tool is _________.

Large growth companies generally emerge in the __________ stage.

The stock price index and contracts and orders for non defense capital goods are _________.

The expansion of the money supply at a rate that exceeds the increase in goods and services will likely result in ___________.

Which of the following describes the rate at which your ability to purchase grows while you hold an interest-earning investment?

Which of the following companies will be the best example of a turnaround? Portfolio manager Peter Lynch would classify Coca-Cola as _________.

Which of the following is the rate at which the general level of prices for goods and services is rising?

An industry analysis for manufacturers of a small personal care gadget observed the following characteristics: 1. Industry sales have grown at 15-20% per year in recent years are expected to grow at 10-15% per year over the next three years, still well above the economic growth rate. 2. Some U.S. manufacturers are attempting to enter fast growing non-U.S. markets, which remain largely unexploited. 3. Some manufacturers have created a new niche in the industry by selling directly to customers through mail order. Sales for this industry segment are growing at 40% per year. 4. The current penetration rate in the U.S. is 60% of households and will be difficult to increase. 5. Manufacturers compete fiercely on the basis of price, and price wars within the industry are common. 6. Some manufacturers are able to develop new, unexploited niche markets in the U.S. based on company reputation, quality, and service. 7. Several manufacturers have recently merged, and it is expected that consolidation in the industry will increase. 8. New manufacturers continue to enter the market. -Characteristics 4 and 5 would indicate that the industry is in the _________ stage.

Assume that the Federal Reserve increases the money supply.This will cause ____________. I.interest rates to decrease II.consumption and investment to decrease III.inflation to fall

GDP refers to _________.

Which of the following actions should the central bank take if monetary authorities want to reduce the supply of money to slow the rate of inflation?

If you believe the economy is about to go into a recession you might change your asset allocation by selling _______ and buying ______.

Counter-cyclical fiscal policy is best described by which of the following statements?

Which of the following would not be considered a supply shock?

If interest rates increase,business investment expenditures are likely to __________ and consumer durable expenditures are likely to _________.

The market value of all goods and services produced during a given time period is called ______.

An expanding economy puts stress on the manufacturing ability of a company.When a firm turns business down during periods of economic expansion a problem exist in the area of ____________.

Which one of the following stocks represents industries with below-average sensitivity to the state of the economy?