Economic and Investment Theories

Multiple Choice

In March 2020 of the COVID-19 pandemic, The US Government imposed strict quarantines and shut-downs of bulk business activities. What was foreseen of the DJIA? (3m)

• Increase

• Decrease

• Stationery

• N/A

Multiple Choice

In February 2022, Russia invaded Ukraine in an escalation of the Russo-Ukrainian War. What effect on the global-scale economy was caused? (3m)

• 1. Inflations 

• 1. Unemployment 

• Decrease in interest rates

• 1. Deflations 

Multiple Choice

In January 2023, inflation rates had seemingly begun to decrease, leading investors to believe this event of a ‘cooling inflation’ will cause a decrease in federal rates. Which of the following are most likely to surge most in demand and price? (5m)

• Luxury goods

• Silver

• Gold

• Fixed deposit accounts

Multiple Choice

As of September 2022, the Bureau of Labor Statistics reported that the US unemployment rate had ticked up to 3.7% in August, an increase that surprised economists who had expected it to remain at July's 3.5%. Why can this be good news? (5m)

• 1. Increased entrepreneurship and self-employment opportunities are boosting economic innovation

• 1. A rise in unemployment may indicate a shift towards a more skilled and competitive job market

• 1. Improved automation and technological advancements are reducing the need for certain low-skilled jobs

• 1. The unemployment rate is rising due to more people actively seeking employment, reflecting confidence in the job market

Multiple Choice

What recent event in the bond markets has raised concerns about the growth prospects for the US economy, potentially signaling an economic downturn? (8m)

• Yield-curve flattening

• Yield-curve steepening

• Yield-curve inversion

• Yield-curve normalization

Multiple Choice

Which of the following relates to an asset bubble? (8m)

• Asset A

• Asset B

• Asset C

• N/A