Economics and analysis

A technical analyst is least likely to consider which of the following when selecting securities?

Corporate earnings.

Which of the following tools is most often used by the Federal Reserve Board to control the money supply?

Engaging in open market operations.

Which of the following economists supports demand-side economics?

John Maynard Keynes was the first demand-side economist. He believed that by increasing the income available for spending and saving, a government could increase demand and improve the country's economic well-being. Higher taxes and higher government spending are key tenets of this theory.

Proponents of which of the following technical theories assume that small investors are usually wrong?

Odd lot

Which of the following would be of least interest to a technical analyst?

PE ratio

Which of the following may be affected when a company declares a cash dividend?

Shareholders' equity & Total liabilities.

Which economic theory states that a reduced tax rate will result in a healthy economy that will in turn generate more taxes?

The Supply Side Economic Theory (Reaganomics) is that reduced tax rates will result in a healthier economy, which will generate more taxes to compensate for the reduced rates. Arthur Laffer

The Fed is making purchases in the open market. What are the effects of this action?

The federal funds rate is likely to go down & bond prices are likely to rise.

Which of the following balance sheet entries may be affected when a company pays a cash dividend?

Total assets. Total liabilities.

Each of the following would cause a decrease in the balance of trade deficit EXCEPT:

an increase in imports of foreign products

The prime rate

is the rate of interest charged by banks to their best customers.

dividend retention ratio

is the reciprocal of the dividend payout ratio

The Consumer Price Index (CPI) is released:

monthly

If the yield curve becomes inverted, a likely cause would be that the Fed has:

tightened short-term credit.