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YIC 2024 Summer Program | Class #2 & 3 Review Flashcards | StudBud
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YIC 2024 Summer Program | Class #2 & 3 Review
YIC 2024 Summer Program | Class #2 & 3 Review
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Flashcards
22 cards
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Questions
22
Answers
1
What is a key metric we look for in a quarter report?
Cash flow
Revenue
Expenses
Earnings/Profit
2
What are the fundamental factors that may drive a company's future prospects?
World and national events
Economic trends
Industry health
Company health
3
What are the two major
threats
to the economy monitored by the Federal Reserve?
Political elections; Inflation
Fiscal policy; technology bubbles
Foreign wars; Viruses
Too much inflation; Recession
4
Stock prices generally move with inflation.
False
True
5
When the economy is growing too fast, interest rates should be . . . .
Maintained
Cut
Raised
6
What is INFLATION?
Causes the devaluation of the dollar
The rise in the prices of goods and basic services
When the Federal Reserve removes money into the economy
When bonds increase in price
7
If the Fed
decreased interest rates
, will that encourage you to open a new credit card to be able to spend more money?
No
Yes!
8
When should we
cut
interest rates?
When the Fed wants to stimulate more borrowing and spending by the public.
When the economy is suffering from a recession.
When the economy is enjoying good growth.
When the ecoonomy is suffering from rampant inflation.
9
What is a bear market?
The stock market is maintaining the same value; the economy is stable
The stock market is declining in value; economy is faltering
The stock market is increasing in value; economy is growing
The stock market is volatile; the economy is fluctuating
10
How often does the Federal Reserve
change
interest rates?
3x annually
Never.
1x annually
8x annually
11
What drives a stock price?
Exchanges
Bond prices
Supply and demand
Dunkin Donuts
12
The
purchasing power
(amount of things you can buy) of $100 decreases when inflation is high.
True
False
13
What is DIVERSIFICATION?
Distributing your portfolio across industries, companies, and securities.
Buying risky companies in our portfolio.
A portfolio heavily weighted in two or three successful industry.
Something that is able be achieved through buying an S&P 500 Index Fund.
14
What is a market index?
A tool that measures the "overall" performance of the market or industry.
A device used to draw lines on a stock chart
The stock price of publicly-traded company
Index that measures the stock market by tracking a group of certain stocks
15
What is a stock?
A share of a company
Charts and quarter reports
Something that goes up
A board seat at a company
16
Can the average investor, like us, directly trade on the PRIMARY MARKET?
NO!
YES!
17
Which portfolio has a greater diversification?
Portfolio 1
Both are equally diversified
Portfolio 2
18
What is a bull market?
The stock market is declining in value; economy is faltering
The stock market is increasing in value; economy is growing
The stock market is volatile; the economy is fluctuating
The stock market is maintaining the same value; the economy is stable
19
Select one of the two dual mandates of Federal Reserve?
To maintain stable prices
To achieve maximum employment
Fostering efficient payment system
Regulate America's big banks.
20
Is this an example of COMPOUND INTEREST?
False
True
21
What is an exchange?
New York City and London
A share of a company
Online or physical "warehouses" where stock transactions take place
Where companies first sell their shares to the public in an IPO.
22
What is a quarter report?
A summary or collection of financial statements and info 4x yearly
A summary or collection of financial statements and info 2x yearly
A collection of coins kept in a piggy bank
A summary of collection of the Federal Reserve's assets
