Advanced Wealth Management Course (IIBF) - Paper 1
Part II: Ch 4: The Economic Environment
Q1.
Who is responsible for publishing data on the monetary, banking and financial sectors and the balance of payments?
Q2.
Macroeconomics usually looks at sectors in the general market, individual companies and the impact on individuals.
Q3.
The free market dominates the
Q4.
The interplay between market forces and government regulation is described as a
Q5.
(I) In a Capitalist economy, decisions as to how much to produce, what to produce and what to charge are left to ‘market’ rule. (II) In a Command economy, the idea is to have everyone employed and everyone receiving the necessities of life.
Q6.
The economic calendar provides broad details of the timing and interpretation of the official data releases most watched by financial markets.
Q7.
The top-down approach works on:
Q8.
In the top-down approach, analysis concentrates on the intrinsic strength of the investment, using a whole range of factors and indicators.
Q9.
‘Credit provided to the private sector’ is an example of
Q10.
Which is the correct example of Leading Indicators?
Q11.
Which is the wrong example of Coincident Indicators?
Q12.
The fluctuations in economic activity between boom times and bad times are known as:
Q13.
The GDP, in the ‘Expansion to peak stage’ to a business cycle
Q14.
Fiscal policy involves government controls over the amount of money in circulation.
Q15.
The way/s of measuring GDP:
Q16.
(I) The Income approach, which is the total of the ‘value added’ by households, farmers, business and each level of government. (II) There are four Consumer Price Index (CPIs) in India.
Q17.
An increased supply of savings leading to increased credit availability will lead to lower prices, i.e. lower interest rates.
Q18.
(I) Economic growth is a rise in the level of goods and services without the influence of high levels of inflation. (II) Deregulation means a lessening of government controls or interference in the financial markets of a country.
Q19.
The Economic decisions in our society are influenced by
Q20.
(I) A top-down approach, which starts with a macroeconomic outlook, gradually narrowing down to a micro outlook. (II) A bottom-up approach, which looks at the financial and management fundamentals of a company when making a decision to purchase.