HESI A2: Grammar (Quiz 1) Welcome to your Series 65 Practice Quizzes. Note: We designed four (4) parts of practice quizzes for each Domain. Each part has 25 questions. Domain 1 (part 1): Economic Factors and Business Information​​​​​​​. (25 questions) Please click NEXT to start your Free Series 65 Practice Quizzes right away. Best of Luck! 1. Series 65, Economic Factors and Business Information,Series 65 Over time, a country's trade deficit will lead to a decline in the value of its currency because A. A) domestic goods will become too expensive for foreigners to buy B. B) the country's exports will exceed its imports C. C) the money supply will decrease D. D) the country's imports will exceed exports creating selling pressure on its currency None 2. Series 65, Economic Factors and Business Information,Series 65 A free trade agreement is entered into between Country A and Country B. As time goes on, the value of Country A's currency increases while that of Country B's decreases. The effect of this will likely be that A. A) the free trade agreement will be abrogated B. B) Country A’s exports to Country B will increase C. C) Country A’s imports from Country B will increase D. D) Country B’s imports from Country A will increase None 3. Series 65, Economic Factors and Business Information,Series 65 If the dollar weakens, which of the following statements is TRUE? A. A) The dollar buys more foreign currency. B. B) Foreign securities denominated in their domestic currency decrease in value to the U.S. investor. C. C) An increase in U.S. interest rates might strengthen the dollar. D. D) U.S. exports become less competitive. None 4. Series 65, Economic Factors and Business Information,Series 65 All of the following actions will increase the deficit in the U.S. balance of payments EXCEPT A. A) U.S. foreign aid B. B) investments by U.S. firms abroad C. C) Americans buying Japanese cars D. D) purchase by foreigners of U.S. securities None 5. Series 65, Economic Factors and Business Information,Series 65 A significant increase in the importing of goods into the United States would likely have what effect on the strength of the U.S. dollar? A. A) No effect B. B) Fluctuation both ways C. C) Weaken D. D) Strengthen None 6. Series 65, Economic Factors and Business Information,Series 65 If a country's current account shows a trade deficit, it is most likely that A. A) short-term flows are greater than long-term flows. B. B) tax payments are greater than tax receipts. C. C) net exports are greater than zero. D. D) imports are greater than exports. None 7. Series 65, Economic Factors and Business Information,Series 65 The primary function of the Federal Reserve System (the Fed) is to A. A) carry out monetary policy. B. B) implement fiscal policy. C. C) manage the revenues and expenditures of the federal government. D. D) issue bonds to the general public. None 8. Series 65, Economic Factors and Business Information,Series 65 A research analyst studying the performance of ABC Industries compares that with reports from other analysts reviewing other companies in other industries. This is known as A. A) fundamental analysis B. B) bottom-up analysis C. C) top-down analysis D. D) sector analysis None 9. Series 65, Economic Factors and Business Information,Series 65 XYZ Aircraft Manufacturing Corporation, based in the United States, announces a multibillion dollar order for its new jumbo jet from Fly Airlines, a Japanese-based carrier. When the sale is completed, there will be A. A) a debit to the current account of the United States B. B) no effect on the balance of trade C. C) a credit to the current account of the United States D. D) a credit to the current account of Japan None 10. Series 65, Economic Factors and Business Information,Series 65 When a bank that is a member of the Federal Reserve System borrows from another member bank, the rate that is charged is known as A. A) the federal funds rate B. B) the call loan rate C. C) the discount rate D. D) the prime rate None 11. Series 65, Economic Factors and Business Information,Series 65 A securities analyst's approach is to look at the overall economy and try to forecast which industry will outperform. Then, the analyst searches for those individual companies within that industry that appear to have the best expected return and add those to the recommended list. In so doing, this analyst is using A. A) the bottom-up approach. B. B) the optimal portfolio approach C. C) the top-down approach. D. D) the business cycle approach. None 12. Series 65, Economic Factors and Business Information,Series 65 An expansionary fiscal policy would usually result in A. A) a government decreasing government spending to slow down economic activity. B. B) a government operating a balanced budget. C. C) a government increasing government spending to stimulate economic activity. D. D) a government increasing taxes in the economy. None 13. Series 65, Economic Factors and Business Information,Series 65 A securities analyst's stock selection method is to begin by looking for superior companies, regardless of their industry sector or the condition of the overall economy. In so doing, this analyst is using A. A) the business cycle approach. B. B) the top-down approach. C. C) the optimal portfolio approach. D. D) the bottom-up approach. None 14. Series 65, Economic Factors and Business Information,Series 65 A securities analyst's approach is to look at the overall economy and try to forecast which industry will outperform. Then, the analyst searches for those individual companies within that industry that appear to have the best expected return and add those to their recommended list. In so doing, this analyst is using the A. A) bottom-up approach. B. B) top-down approach. C. C) optimal portfolio approach. D. D) business cycle approach. None 15. Series 65, Economic Factors and Business Information,Series 65 Among the responsibilities of the Federal Reserve (the Fed) is influencing the supply of money and credit in the economy. When performing this function, adjusting which of the following is not a tool at its disposal? A. A) The discount rate B. B) The prime rate C. C) The activities of the Federal Open Market Committee D. D) The reserve requirements None 16. Series 65, Economic Factors and Business Information,Series 65 If the dollar weakens, which of the following statements is TRUE? A. A) A rise in U.S. interest rates might strengthen the dollar. B. B) U.S. exports will fall. C. C) Foreign securities denominated in their domestic currency decrease in value to the U.S. investor. D. D) The dollar buys more foreign currency. None 17. Series 65, Economic Factors and Business Information,Series 65 Final approval of the annual operating budget for the United States is given by A. A) the president B. B) the Conference of Governors C. C) the Congress D. D) the Cabinet None 18. Series 65, Economic Factors and Business Information,Series 65 An analyst uses a stock selection method that involves analyzing a specific corporation, followed by evaluating where it fits in its industry and then viewing the overall economy. The term that best describes this method is A. A) efficient frontier B. B) bottom-up C. C) capital asset pricing model D. D) top-down None 19. Series 65, Economic Factors and Business Information,Series 65 Country A develops a new product that is in high demand around the world. The likely effect of this would be A. A) a trade surplus for Country A B. B) a trade deficit for Country A C. C) an increase in the income tax rates of Country A D. D) a decrease in the value of the currency of Country A None 20. Series 65, Economic Factors and Business Information,Series 65 A securities analyst's stock selection method is to begin by looking for superior companies, regardless of their industry sector or the condition of the overall economy. In so doing, this analyst is using the A. A) optimal portfolio approach. B. B) bottom-up approach. C. C) top-down approach. D. D) business cycle approach. None 21. Series 65, Economic Factors and Business Information,Series 65 Which of the following statements best describes what will happen when the value of the American dollar rises in relationship to foreign currencies? A. A) Foreign goods and services will become more expensive for Americans. B. B) The risk of stagflation will increase. C. C) Shares of foreign stock will be worth more in terms of American dollars. D. D) Foreign goods and services will become less expensive for Americans. None 22. Series 65, Economic Factors and Business Information,Series 65 Overnight loans between banks are made at A. A) the discount rate B. B) the federal funds rate C. C) the prime rate D. D) the call loan rate None 23. Series 65, Economic Factors and Business Information,Series 65 Which of the following statements describes the federal funds rate? A. A) Charge on loans to depositary institutions by the New York FRB B. B) Rate charged on reserves traded among commercial banks for overnight use in amounts of $1 million or more C. C) Charge on loans to brokers on stock exchange collateral D. D) Base rate on corporate loans at large U.S. money center commercial banks None 24. Series 65, Economic Factors and Business Information,Series 65 Which of the following statements reflects the monetarist economic position? A. A) The amount of money in the economy determines the overall price level over time, therefore the Federal Reserve should control the growth in the amount of money in the economy in a gradual and predictable way. B. B) The amount of money in the economy is not significant because economic activity reflects the value of real goods and services, therefore the Federal Reserve should not attempt to manage the money supply. C. C) The total amount of money in the economy is the result of the level of interest rates. D. D) The best way to control the money supply is to raise taxes which will reduce the amount of money in the economy and lower prices. None 25. Series 65, Economic Factors and Business Information,Series 65 Which of the following is a component of U.S. fiscal policy? A. A) Taxes and budgeting B. B) Money supply C. C) Reserve requirements D. D) Discount rate None 1 out of 25 Time is Up! Time's up
