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Csc Exam 1 With 100% Correct And Verified Answers 2024, Exams of Advanced Education

Leading Indicators - Correct Answer-Tend to peak and trough before the overall economy & help investors anticipate emerging trends in economic activity. Anticipate change by indicating what businesses and consumers have actually begun to produce and spend: - Housing Starts - Manufacturer's new orders - Commodity Prices - Avg hours worked per week - Stock prices - The money supply Coincident Indicators - Correct Answer-Change at approx the same time and in the same direction as the whole economy & are useful for providing info about the current state of the economy: - Personal income - GDP - Industrial Production - Retail sales

Typology: Exams

2023/2024

Available from 07/13/2024

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Csc Exam 1 With 100% Correct And

Verified Answers 2024

Leading Indicators - Correct Answer-Tend to peak and trough before the overall economy & help investors anticipate emerging trends in economic activity. Anticipate change by indicating what businesses and consumers have actually begun to produce and spend:

  • Housing Starts
  • Manufacturer's new orders
  • Commodity Prices
  • Avg hours worked per week
  • Stock prices
  • The money supply Coincident Indicators - Correct Answer-Change at approx the same time and in the same direction as the whole economy & are useful for providing info about the current state of the economy:
  • Personal income
  • GDP
  • Industrial Production
  • Retail sales Lagging Indicators - Correct Answer-Change after the economy as a whole changes & useful of confirming that a change to a long term trend has occurred:
  • Unemployment
  • Private sector plant and equip spending
  • Business loans and interest on such borrowings
  • Labour costs
  • Inflation rate Expansion - Correct Answer-- Inflation is stable
  • Businesses have adjusted inventories to meet higher demand and are investing in new capacity to meet increase demand
  • Corporate profits are rising
  • New business start ups outnumber failures
  • Stock market activity is strong
  • Job creation is steady and the unemployment rate is steady or falling Peak - Correct Answer-Final stage of the expansion
  • Demand outstrips supply
  • Labour and product shortages cause wage increases and inflation to rise
  • Interest rates rise and bond prices fall
  • Business sales decline
  • Stock prices and activity falls

Contraction - Correct Answer-- Real GDP decreases

  • Business failures out number startups
  • Falling employment
  • Consumers spend less and save more
  • Firms reduce products and investment Trough - Correct Answer-- Interest rates fall, triggering a bond rally
  • Inflation falls
  • Consumers begin spending
  • Stock prices rally Recovery - Correct Answer-- Firms increase production to meet the new demand
  • Firms aren't ready t make new investments
  • Unemployment remains high
  • Period of widespread layoff is over Current Account - Correct Answer-- Records the exchanges of goods and services between Canadians and foreigners
  • Investment income
  • Net Transfers Capital and Financial Account - Correct Answer-- Records financial flows between Canadians and foreigners related to investments by foreigners in Canada and investments by Canadians abroad
  • Net Canadian claims
  • Canadian direct investment aboard
  • Foreign portfolio investments in Canada SROs in Canada - Correct Answer-IIROC and MFDA IIROC - Correct Answer-- Investment Industry Regulatory Organization of Canada
  • National self-regulatory organization for the Canadian securities industry. It was launch June 1, 2008 through the consolidation of the Investment Dealers Association and Market Regulation Services Inc. IIROC can impose penalties on firms who don't meet their regulations MFDA - Correct Answer-- Mutual Fund Dealers Association
  • National SRO of the mutual fund industry.
  • Regulates the operations, standards of practice and business conduct of its members and their representatives with a mandate to enhance investor protection and strengthen public confidence in the Canadian mutual fund industry Growth in GDP results from? - Correct Answer-1. Increase in capital stock
  1. Increase in population over time
  2. Improvements in technology

Recession - Correct Answer-Economic growth is slowing or turned negative, which implies that the economy is shrinking

  • inventory levels rise
  • employment levels are falling & unemployment rate is higher Cyclical unemployment - Correct Answer-Fluctuation in unemployment caused by the business cycle Frictional Unemployment - Correct Answer-Occurs as a result of normal labour turnover. EG students looking for jobs Structural Unemployment - Correct Answer-Occurs when works are unable to secure work b/c they are unskilled, do not live where the jobs are, or decide not to work at the wage being offered. How do higher interest rates affect the economy? - Correct Answer-1. Businesses are faces with a higher cost of capital
  1. Increases the cost of borrowing
  2. Increases the portion of household income needed to service debt
  3. have a negative effect on growth prospects BOC plays a key role in the Canadian economy since it mandates: - Correct Answer-- Regulation of credit and currency
  • Control and protection of the external value of the Canadian dollar
  • Maintenance of stability in the market
  • Promotion of the economic and financial welfare of Canada 3 major functions of the BOC: - Correct Answer-1. Issuance and removal of bank notes
  1. Act as Gov's fiscal agent
  2. Conduct monetary policy Why do Investors select fixed income securities? - Correct Answer-1. Safety of principal
  • gov bonds, t-bills, high grade corp bonds and GICs
  1. Regular income stream - gov and corp bonds
  2. Capital gains - gov and corp bonds