Mock Test 2 — Topic 2: Economics

Kết quả: 6/12 (50%) Nguồn: SAPP CFA1 Revision Mock Test 2 Liên kết: Economics

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Câu 37

Question 37: Consider the following foreign exchange and interest rate information: Spot rate: 1.3382 USD/EUR. One year riskless USD rate = 2.5%. One year riskless EUR rate = 3.5%. The one-year arbitrage-free forward exchange rate is closet to:

(A) 1.2391 USD/EUR.

(B) 1.3513 USD/EUR.

(C) 1.3253 USD/EUR


Câu 43

Question 43: Because she has limited resources and time to devote, an economist who wishes to study the impacts of geopolitical risks should focus her time on risks with a:

(A) high probability and broad impact.

(B) low probability and irreversible impact.

(C) moderate probability and discrete impact.


Câu 50

Question 50: When forward currency exchange-rate contracts are available, the difference between the spot and forward exchange rates for a pair of currencies is most likely to reflect the difference between the two countries’:

(A) economic growth rates.

(B) risk-free interest rates.

(C) annual inflation rates.


Câu 51

Question 51: StarCaps, a manufacturer of promotional caps, has a lease expense of $100,000 each period. The labor and materials cost for each cap is $2.00 and StarCaps faces a market price of $4.50. If StarCaps expects to sell 30,000 caps each period, its most appropriate action is to:

(A) shut down now.

(B) continue to operate and renew the lease.

(C) continue to operate until the lease expires, then shut down.


Câu 52

Question 52: In the context of a foreign exchange transaction, the “sell side” refers to the:

(A) currency dealer.

(B) party who sells the base currency.

(C) party who sells the price currency.


Câu 55

Question 55: The kinked demand curve oligopoly model is based on a belief that:

(A) competing firms that collude to restrict output each have an incentive to cheat.

(B) a firm’s competitors will follow a price decrease but will not follow a price increase.

(C) a firm can increase profits by charging different prices to distinct groups of consumers.


Câu 59

Question 59: If the inflation rate is higher than the central bank’s target rate, an appropriate monetary policy response is to:

(A) decrease the required reserve ratio.

(B) increase the interest rate for borrowed reserves.

(C) purchase government securities in the open market.


Câu 64

Question 64: The currency of Xyzia (XYZ) has an exchange rate with the euro (EUR) of 2.50 XYZ/EUR on July 31 and 2.60 XYZ/EUR on August 31. The euro exchange rate with the U.S. dollar (USD) is 1.10 USD/EUR on July 31 and 1.20 USD/EUR on August 31. The XYZ has:

(A) appreciated relative to the U.S. dollar.

(B) depreciated relative to the U.S. dollar.

(C) remained unchanged relative to the U.S. dollar.


Câu 70

Question 70: John Bobson states: “By imposing a tariff on a good, a country can increase its own economic welfare and, when the tariff revenue is included in the calculation, increase global economic welfare as well.” Bobson’s statement is:

(A) incorrect.

(B) correct, if the country is a large importer of the good.

(C) correct, if the country is a large exporter of the good.


Câu 75

Question 75: In the chain of events by which monetary policy affects the economy, which is most likely to have limitations that make a policy action less effective in achieving its desired outcome?

(A) Changes in interbank lending rates are reflected in other short-term interest rates.

(B) Long-term interest rates change in response to changes in short-term interest rates.

(C) Central bank purchases or sales of securities change the amount of excess reserves in the banking system.


Câu 81

Question 81: An economist finds the following characteristics for the market for two products, S and T: Product Firm’s Pricing Power Concentration Ratio S Considerable High T Some Low Based on the above characteristics, the economist could conclude that the industry for Product S is:

(A) an oligopoly, and the industry for Product T is also an oligopoly.

(B) an oligopoly, and the industry for Product T is monopolistic competition.

(C) monopolistic competition, and the industry for product T is perfect competition.


Câu 85

Question 85: Under which of the following exchange rate regimes do the actions of a country’s monetary authority keep the domestic currency closest to its stated target exchange rate with another currency?

(A) Fixed peg.

(B) Dollarization.

(C) Currency board.