HESI A2: Grammar (Quiz 3) 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 3): 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 of the following would NOT be considered a defensive security? A. A) Steel company stock B. B) Tobacco stock C. C) Food chain stock D. D) Utility company stock None 2. Series 65, Economic Factors and Business Information,Series 65 To determine the amount of change in the GDP from 1 year to another, both years' GDP should be converted into A. A) the exchange value of the dollar, as compared with major foreign currencies B. B) the current dollar price of gold bullion C. C) international depositary receipts D. D) constant dollars None 3. Series 65, Economic Factors and Business Information,Series 65 The Conference Board, a nongovernmental nonprofit organization, regularly publishes a list of economic indicators. Which of the following would be included in their list of leading indicators? A. A) Manufacturing and trade sales (in constant dollars) B. B) Average prime rate C. C) Average duration of unemployment D. D) Average weekly initial claims for unemployment insurance None 4. Series 65, Economic Factors and Business Information,Series 65 An investor purchasing gold bullion is most likely looking for an investment that is A. A) countercyclical. B. B) cyclical. C. C) income producing. D. D) exchange traded. None 5. Series 65, Economic Factors and Business Information,Series 65 The Conference Board releases information about the economy on a monthly basis. Included are a number of different indicators. Economic indicators can be leading, lagging, or coincidental, which indicates the timing of their changes relative to how the economy as a whole changes. Which of the following is a lagging economic indicator? A. A) Nonagricultural employment B. B) Manufacturers’ new orders for consumer goods C. C) Building permits (housing starts) D. D) Average prime rate None 6. Series 65, Economic Factors and Business Information,Series 65 If the Consumer Price Index (CPI) is up and consumer demand is also up, the economy is likely in which stage of the business cycle? A. A) Peak to contraction B. B) Contraction to trough C. C) Recovery to trough D. D) Expansion to peak None 7. Series 65, Economic Factors and Business Information,Series 65 If a customer purchases a food company stock and a utility stock, the customer's portfolio is A. A) balanced B. B) cyclical C. C) diversified D. D) defensive None 8. Series 65, Economic Factors and Business Information,Series 65 The economy has gone through 3 consecutive quarters of economic decline with no immediate end in sight, and therefore could be said to be A. A) in a recovery B. B) lagging C. C) in a depression D. D) in a recession None 9. Series 65, Economic Factors and Business Information,Series 65 Which of the following statements about the Consumer Price Index (CPI) is NOT true? A. A) The CPI is the most commonly used indicator of the inflation (or deflation) rate in the United States. B. B) The CPI measures the increase or decrease in the level of consumer prices with respect to the level of wholesale prices on which consumer prices depend. C. C) The CPI is computed monthly. D. D) The CPI measures the rate of increase or decrease in a broad range of prices, such as food, housing, medical care, and clothing. None 10. Series 65, Economic Factors and Business Information,Series 65 An economic condition where the rate of price increases reaches a stable equilibrium and stays there until a shock to the system occurs, at which time, the rate of inflation changes is known as A. A) price controls. B. B) stagnation. C. C) stagflation. D. D) inertial inflation. None 11. Series 65, Economic Factors and Business Information,Series 65 Which of the following best describes the economic phase in which unemployment increases and businesses operate at their lowest capacity levels? A. A) Contraction B. B) Expansion C. C) Trough D. D) Peak None 12. Series 65, Economic Factors and Business Information,Series 65 Expansions in the business cycle are characterized by A. A) higher consumer debt, rising inventories B. B) increasing college enrollments and enlistment in military service C. C) increasing consumer demand for goods and services, increasing industrial production, and rising stock markets and property values D. D) increase in want ads in newspapers, decrease in nonfarm jobs None 13. Series 65, Economic Factors and Business Information,Series 65 To reflect a more accurate picture of economic results, gross domestic product is adjusted A. A) to include bank reserves B. B) for inflation C. C) to match foreign GDP D. D) downward by the balance of payments None 14. Series 65, Economic Factors and Business Information,Series 65 The Conference Board releases information about the economy on a monthly basis. Included are a number of different indicators. Economic indicators can be leading, lagging, or coincidental, which indicates the timing of their changes relative to how the economy as a whole changes. Which of the following is a lagging economic indicator? A. A) Nonagricultural employment B. B) Prime interest rate C. C) Manufacturers' new orders for consumer goods D. D) Building permits (housing starts) None 15. Series 65, Economic Factors and Business Information,Series 65 A business reporter claims that we are suffering from inertial inflation. This means A. A) the economy is about to enter a deflationary period. B. B) the current rate of inflation will remain at this level until economic shocks cause it to change. C. C) the business cycle is heading towards a trough. D. D) prices are increasing at a steady rate. None 16. Series 65, Economic Factors and Business Information,Series 65 Increases in which of the following indicators are regarded as predictors of the level of business activity? A. A) Levels of inventories B. B) Corporate profits C. C) Personal incomes D. D) Building permits None 17. Series 65, Economic Factors and Business Information,Series 65 Which of these industries would be considered defensive in the face of a recession? A. A) Food producers B. B) Automobile manufacturing C. C) Trucking D. D) Real estate construction None 18. Series 65, Economic Factors and Business Information,Series 65 Under the concept of inertial inflation, A. A) prices tend to remain the same until the system receives an economic shock. B. B) inflation and deflation alternate at regular intervals. C. C) core inflation is a better measure of the actual inflation rate than the CPI. D. D) prices tend to increase at a steady rate until the system receives an economic shock. None 19. Series 65, Economic Factors and Business Information,Series 65 Which of the following is a NOT a leading economic indicator? A. A) Orders for durable goods B. B) New housing permits C. C) Duration of unemployment D. D) Money supply None 20. Series 65, Economic Factors and Business Information,Series 65 The gross domestic product (GDP) for the United States is composed of A. A) the national debt B. B) the sum of all consumer goods, capital goods, and services produced in the United States and net exports to other countries C. C) the sum of all goods and services, imports, and foreign investment D. D) the balance of payments None 21. Series 65, Economic Factors and Business Information,Series 65 All of the following are leading indicators for economic growth EXCEPT A. A) stock prices as measured by the S&P 500 index B. B) orders for durable goods C. C) average weekly initial claims for state unemployment compensation D. D) average prime rate None 22. Series 65, Economic Factors and Business Information,Series 65 Which of these is a definition of inflation? A. A) An increase in purchasing power B. B) An increase in the value of the dollar C. C) A decrease in the value of the monetary unit D. D) A decrease in consumer demand None 23. Series 65, Economic Factors and Business Information,Series 65 The Conference Board releases information about the economy on a monthly basis. Included are a number of different indicators. Economic indicators can be leading, lagging, or coincidental, which indicates the timing of their changes relative to how the economy as a whole changes. Which of the following is a coincident economic indicator? A. A) Stock market prices as measured by the S&P 500 B. B) Industrial production C. C) Machine tool orders D. D) Agricultural employment None 24. Series 65, Economic Factors and Business Information,Series 65 The Conference Board releases information about the economy on a periodic basis. Included are a number of different indicators. These indicators can be used to predict how the economy as a whole might change. Which of the following would be considered a leading indicator? A. A) Industrial production B. B) CPI for services C. C) Stock prices as measured by a broad index such as the S&P 500 D. D) Gross domestic product None 25. Series 65, Economic Factors and Business Information,Series 65 An investor regularly reads financial blogs on the Internet and they are filled with articles suggesting that the economy is headed for a slump. Some are even saying that there will be price deflation. If these projections are accurate, the best place for the investor to place funds would probably be A. A) U.S. Treasury bonds B. B) common stock C. C) commercial real estate D. D) gold None 1 out of 25 Time is Up! Time's up
