HESI A2: Grammar (Quiz 2) 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 2): 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 Which school of economists encourages a government to spend money to move the economy into an expansionary phase? A. A) Supply side B. B) Classical C. C) Monetarist D. D) Keynesian None 2. Series 65, Economic Factors and Business Information,Series 65 When analyzing the business cycle, you would expect which phase to occur before reaching the trough? A. A) Peak B. B) Recovery C. C) Expansion D. D) Contraction None 3. Series 65, Economic Factors and Business Information,Series 65 Which term refers to the taxation, expenditures, and debt management of the federal government? A. A) Open market operations B. B) Revenue code procedures C. C) Monetary policy D. D) Fiscal policy None 4. Series 65, Economic Factors and Business Information,Series 65 Which of the following is not a characteristic of expansionary monetary policy? A. A) The reserve requirement will be increased. B. B) Interest rates may decline. C. C) More funds are available for banks to lend to borrowers. D. D) The money supply will increase. None 5. 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 decreases while that of Country B increases. The effect of this will likely be that A. A) Country A’s imports from Country B will increase B. B) Country A’s exports to Country B will decrease C. C) Country B’s imports from Country A will increase D. D) the free trade agreement will be abrogated None 6. Series 65, Economic Factors and Business Information,Series 65 When a bank's reserve account is running low, it might choose to borrow from the Fed. When doing so, the bank will be charged A. A) the prime rate B. B) the discount rate C. C) the federal funds rate D. D) the call loan rate None 7. Series 65, Economic Factors and Business Information,Series 65 Which of the following statements reflects the monetarist economic position? A. A) The best way to control the money supply is to raise taxes, which, in turn, will reduce the amount of money in the economy and lower prices. B. B) The amount of money in the economy determines the overall price level over time and, therefore, the Federal Reserve should control the growth in the amount of money in the economy in a gradual and predictable way. C. C) The total amount of money in the economy is the result of the level of interest rates. D. D) The amount of money in the economy is not significant because economic activity reflects the value of real goods and services and, therefore, the Federal Reserve should not attempt to manage the money supply. None 8. Series 65, Economic Factors and Business Information,Series 65 The economic theory that says economic growth results from lower tax rates and lower government spending is A. A) Keynesian theory B. B) monetary theory C. C) demand-side theory D. D) supply-side theory None 9. Series 65, Economic Factors and Business Information,Series 65 If the U.S. dollar has been appreciating against foreign currencies, all of the following statements are true EXCEPT A. A) the U.S. dollar buys more of foreign currencies B. B) U.S. goods become more expensive in foreign countries C. C) foreign goods become cheaper in the United States D. D) U.S. exports become more competitive None 10. Series 65, Economic Factors and Business Information,Series 65 Which of the following would lead to a debit to our foreign account balance? A. A) U.S. residents taking vacations abroad B. B) Foreign governments repaying loans to U.S. banks C. C) An increase in exports D. D) Residents of other countries buying apartments here None 11. Series 65, Economic Factors and Business Information,Series 65 Which of the following industries would be least cyclical? A. A) Heavy equipment B. B) Leisure products C. C) Supermarket chain D. D) Automobile manufacturing None 12. Series 65, Economic Factors and Business Information,Series 65 If an economist were to describe defensive issues, he would probably not include companies that produce A. A) clothing B. B) tobacco products C. C) food products D. D) building materials None 13. Series 65, Economic Factors and Business Information,Series 65 During the past 2 quarters, the GDP declined by 3%, unemployment rose by 0.7%, and the Consumer Price Index fell off by 1.3%; this economic condition is called A. A) inflation B. B) depression C. C) stagflation D. D) recession None 14. Series 65, Economic Factors and Business Information,Series 65 Economists have determined that the economy is slowing down. Orders for durable goods have been declining and unemployment, while not a reason for concern, has been steadily increasing over the past year. Given the information provided, what phase of the business cycle is the economy currently experiencing? A. A) Deflation B. B) Trough C. C) Contraction D. D) Expansion None 15. Series 65, Economic Factors and Business Information,Series 65 Gross Domestic Product (GDP) is increasing. Real interest rates are relatively high. Consumer sentiment is strong, as are auto and retail sales. Labor productivity is declining. What state of the business cycle is the economy likely experiencing? A. A) Expansion to peak B. B) Trough to recovery C. C) Peak to contraction D. D) Recovery to expansion None 16. Series 65, Economic Factors and Business Information,Series 65 While reviewing nationwide industrial production figures, an analyst notices that inventories have been rising. From that information, one would gather that the economy is most likely in which phase of the business cycle? A. A) Recovery B. B) Contraction C. C) Peak D. D) Expansion None 17. Series 65, Economic Factors and Business Information,Series 65 Which of the following industries would tend to be the most cyclical? A. A) Food producers B. B) Tobacco producers C. C) Appliance manufacturers D. D) Supermarkets None 18. Series 65, Economic Factors and Business Information,Series 65 Which of the following is considered the most accurate method of measuring GDP? A. A) As a function of GNP B. B) Eurodollars C. C) Actual dollars D. D) Constant dollars None 19. Series 65, Economic Factors and Business Information,Series 65 If the Consumer Price Index (CPI) is down but consumer demand is up, the economy is likely in which stage of the business cycle? A. A) Contraction to trough B. B) Peak to contraction C. C) Recovery to expansion D. D) Recovery to trough None 20. Series 65, Economic Factors and Business Information,Series 65 Which of the following is most likely to be regarded as a defensive stock? A. A) A stock selling at an extremely high PE ratio B. B) A stock with a strong cash position and little debt C. C) A food company stock D. D) An aerospace stock None 21. Series 65, Economic Factors and Business Information,Series 65 In comparing the change in the GDP from 1 year to another, to arrive at an accurate figure, each year's GDP should be converted to which of the following? A. A) Constant dollars B. B) International dollars C. C) Dollars in terms of gold bullion D. D) Dollars valued by exchange with foreign currencies None 22. Series 65, Economic Factors and Business Information,Series 65 An investment strategy that is designed to minimize risk and preserve the investor's principal is A. A) a growth investment strategy B. B) a defensive investment strategy C. C) a market capitalization investment strategy D. D) an aggressive investment strategy None 23. Series 65, Economic Factors and Business Information,Series 65 The contraction phase of the business cycle is least likely accompanied by A. A) decreasing inflation pressure. B. B) decreasing unemployment. C. C) decreasing business and consumer expenditures. D. D) low or negative economic growth. None 24. Series 65, Economic Factors and Business Information,Series 65 Interest rates are rising. An analyst would be most likely to state that the business cycle is in which stage? A. A) Contraction B. B) Trough C. C) Peak D. D) Expansion None 25. Series 65, Economic Factors and Business Information,Series 65 Interest rates are declining. An analyst would be most likely to state that the business cycle is in which stage? A. A) Trough B. B) Peak C. C) Expansion D. D) Contraction None 1 out of 25 Time is Up! Time's up
