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0 1 . Which of the following choices below is not a popular charting formation, used by technicians: Select one: a . Triangles b .

01. Which of the following choices below is not a popular charting formation, used by technicians:
Select one:
a. Triangles
b. Double & triple tops
c. Head & shoulders
d. Flags & pennants
e. Relative strength index
02. Which of the following is NOT a key characteristic of "Moving averages":
Select one:
a. Usually calculated over a medium to longer period, ranging from 10 to 200 days
b. Tracks data (security prices) as an average value over time
c. Should be sold when above a reading of 80, and bought below a reading of 20
d. Used to 'smooth out' daily fluctuation and focus on underlying trends
03. The 'Top-down approach' of fundamental analysis, should operate in which order:
Select one:
a. Analyse economy - analyse industry- analyse firm
b. Analyse economy - analyse firm- analyse industry
c. Analyse industry- analyse firm- analyse economy
d. None of these choices as you would analyse the company's ratios and financials first to decide on which security (share) is most suitable to buy.
04. Which of the following is NOT a common indicator used in the "top-down fundamental approach":
Select one:
a. The company's P/E ratio
b. Current market interest rates
c. Current consumer & business sentiment indicators
d. The current exchange rate
05. Which of the following is NOT an example of a 'demand shock':
Select one:
a. Changes in wage rates
b. Changes in government spending
c. Changes in the money supply
d. Changes in tax rates
06. Which of the following is NOT an example of a 'supply shock':
Select one:
a. Changes in foreign export demand
b. Floods, droughts, bushfires
c. Changes in the price or availability of certain products (like oil)
d. Changes in wage rates
07. Which of the following is NOT an example of a "supply-side policy":
Select one:
a. Encourage more investment
b. Generate faster overall economic growth
c. Government stimulus package aimed at particular industries
d. Lower marginal tax rates for businesses
e. Improve incentives to work
08. In keeping with the 'investment theory' to choose industries that will be helped by your expected economic scenario; which choice below best fits this statement -" you should choose these types of shares, if the economy is projected to do well, but not if the economy is expected to weaken":
Select one:
a. Non-cyclical shares
b. Cyclical shares
c. Defensive shares
d. Lower P/E ratio shares
09. According to the Bodie source material readings (for this week), which of the following is NOT regarded as 'a factor that will determine the sensitivity of a firm's earnings to the business cycle':
Select one:
a. The firm's operating leverage
b. The firm's financial leverage
c. The firm's sensitivity to sales
d. The firm's net profit margins
10. According to the "Industry life cycles theory" (Bodie readings), the following expectation would characterise which stage - "characterised by growth rates that are no faster than the general economy":
Select one:
a. Slowing or in relative decline
b. Maturity
c. Consolidation
d. Start-up

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