1 Fiscal policy refers to the government's to stabilize the economy. influence of money supply and demand O trading policy O technology development O spending and taxing 2 Which of the following is a characteristic of the start-up stage of the industry life cycle? ONew technology. Many competitors. Slow growth. Dominant industry leader. 3 are indicators whose values reach troughs and peaks before the aggregate economy does. Front-running indicators Lagging indicators O Leading indicators First indicators 4 When the Federal Reserve the discount rate, the money supply of the economy will increase. raises Olowers does not change None of the above. 5 At what stage of industry life cycle a company would face an influx of competition? O Start-up O Consolidation O Maturity Housing starts is O a leading economic indicator a coincidental economic indicator a lagging economic indicator None of the above. 7 Which of the following will affect the sensitivity of a firm's earnings to the business cycle? O Operating leverage. O Dividend policy. O Tax liabilities. None of the above will. 8 Companies in the maturity state of the industry life cycle are sometimes referred to as O falling stars bargains Oturnarounds Ocash cows Relative decline 6 9 What is the first step of a proper top-down analysis of a company's prospects? O The analysis of the global economy. O The analysis of the domestic economy. O The analysis of the industry the company is in. O The analysis of the company's fundamentals. 10 According to the section rotation analysis, investors should invest more heavily in enters a contraction stage. cyclical industry defensive industry Either industry. O Both industries. 11 Monetary policy refers to the government's O manipulation of money supply O taxing policy exchange rate policy O interstate business policy when the economy to change investment and consumption demand. 12 is an example of a defensive industry. O Food producers Auto manufacturers O Both A and B are examples. ONeither A nor B is an example. 13 Industry analysis is affected by O technology interest rate O demographics O All of the above. 14 Which of the following risks a U.S. company would specifically face in global environment? O Total risk. O Exchange rate risk. Systematic risk. All of the above. 15 Which of the following is true about industry analysis? When the economy is booming, rates of return across industry do not vary greatly. O When the economy is weak, rates of return across industry do not vary greatly. O Rates of return across industry vary during a specific period of time. O Rates of return across industry do not vary over time