1. As the US Dollar strengthens against most other major currencies, what does this mean for the U.S. Trade balance between imports and exports?

A. A stronger US currency will normally result in weaker demand for US Exports

B. A stronger US currency will normally result in stronger demand for US Exports

C.A stronger US currency will normally result in stronger demand for US imports of foreign goods

2. Which sector rotation would likely occur given the following economic scenario?

The economy has peaked and GDP is expected to decline.

1. Investors would likely sell cyclical stocks and buy defensive stocks.
2. Investors would sell their bonds and purchase stocks
3. Investors understand that the economic cycle has nothing to do with short-term stock returns and GDP growth does not impact company earnings in any way.
4. Investors would likely sell stocks with low operating leverage and buy stocks with high operating leverage