Orion Series 65 Section 11 Quick Quiz Questions

What is the balance sheet equation?

Assets = liabilities + shareholders' equity

Final approval of the annual operating budget for the United States is given by the?

Congress

The research department of an investment advisory firm forecasts that the current business cycle should reach its peak within the next 2 months. Under such circumstances, which of the following portfolio adjustments would be most suitable for the firm's customers who actively invest in common stocks?

Defensive stocks

Which of the following industries' performance is least likely to track the business cycle?

Pharmaceuticals

If the value of the U.S. dollar increases against other currencies, which of the following are TRUE?

U.S. exports are less competitive in foreign countries and Foreign imports into the U.S. are more competitive in U.S. markets.

Which of the following securities are the most interest-rate sensitive?

Utility stocks and Preferred stocks

An analyst attempting to determine the extent to which financial leverage is being employed by a company would examine the company's?

debt-to-equity ratio

As current interest rates go up, the market price of existing corporate bonds bearing lower interest rates will?

decrease

All of the following actions will increase the deficit in the U.S. balance of payments EXCEPT?

purchase by foreigners of U.S. securities

Among the effects of a country devaluating its currency is that there will probably be?

a credit to that nation's trade account balance and an increase in that nation's exports