Security Exam Chapter 19

The FRB will _____ securities to increase the money supply and ease credit.

True or False: A strong U.S. dollar benefits U.S. manufacturers that export their goods.

• True

• False.

_______ stocks are related to companies whose sales and earnings are growing at a faster rate than the overall economy.

Higher inflation leads to ____________ interest rates, which causes bond prices to _______.

When the FOMC sells securities, it is pursuing a(n) _________ money policy in an attempt to _____________ credit.

True or False: Coincident economic indicators reflect current trends in the business cycle.

• True

• False

There would be a tightening of the money supply if the discount rate is _______________.

True or False: Market cap includes the treasury shares of the corporation.

• True

• False. Since treasury shares were repurchased, they are no longer outstanding.

When the FOMC buys securities, it is pursuing a (n) _________ money policy in an attempt to ________ the economy.

True or False: Growth stocks have high P/E ratios and low dividend payouts.

• True

• False