A proposed new regulation to combat unethical market behavior might not be implemented by a regulator because of the:

A person ate three chocolate bars during his lunch break. Afterward, he stated that although the first chocolate bar was most enjoyable, he found the second one less so, and the third was the least enjoyable of them all. This progressive loss of satisfaction with additional consumption is referred to in economics as the law of:

The following table shows the effect of increasing the amount of fertilizer used in various fields at an agricultural test center and the resulting pounds of tomatoes produced.

Field Units of Fertilizer Used Pounds of Tomatoes Produced

1- 0 40

2- 10 80

3- 20 100

4- 30 110

5- 40 90

The effect of increasing the use of fertilizer on output levels is an example of:

Brian owns a restaurant and makes decisions about the wages that he offers his employees based on the local supply and demand of labour. Brenda, a policy analyst for the federal government, recommends changes in tax laws that will reduce the unemployment rate across the country. Microeconomic decision making is the primary focus of:

A natural monopoly is most likely characterized by:

Compared with GDP calculated using the expenditure approach, gross domestic income will most likely be:

A government is attempting to reduce the level of aggregate demand through its fiscal policy. To achieve this goal, the government will most likely increase:

An analyst notes that the following economic conditions currently exist:

-Businesses are replacing obsolete equipment.

-Consumers who had previously postponed the purchase of household items are beginning to make those purchases.

-Interest rates and inflation are low.

The business cycle is most likely:

in a recent release of economic indicators, personal income rose for the first time in nine months. An analyst will most likely conclude that the economy in the immediate future should be:

According to the monetarist view of inflation, there is a relationship between inflation and the:

In 2011, Germany had the second largest current account surplus in the world. Some of the countries with the largest current account deficits at that time were the United Kingdom, France, and Spain. The currency for the United Kingdom is the British pound; the currency for France, Spain, and Germany is the euro, along with 15 other European countries. The country that was most likely to experience a self-adjusting change in its exchange rate to correct its current account deficit was:

In a year in which there has been strong economic growth worldwide, the overall sum of the balance of payments accounts for all countries is:

Previously, the exchange rate between euros and US dollars was €0.75/$1. Now, the exchange rate is €0.80/$1. This difference means that:

An increase in international trade results in:

When a company sells a product on credit, the day the merchandise is shipped to the customer, the company will most likely report an increase in:

Which of the following activities would be classified as a cash outflow from investing activities?

The following information is available about the return on assets (ROA) for a company and the industry in which it operates:

Company IndustryNet profit margin(Net income/Revenues) 10.00% 12.00%

Asset turnover(Revenues/Total assets) 1.5 times 1.2 times ROA 15.00% 14.40%

An investor can conclude that compared with the industry, the company:

Three parents are discussing the allowances that they give to their 10-year-old sons. Although each child receives a total of $520 per year, the manner in which the payments are made differs:

Jack gives his son $10 per week.

Bill gives his son $400 on January 1 and the remaining $120 on December 31.

Brian gives his son half ($260) on January 1 and the other half on July 1.

The parent(s) whose payment system can be described as an annuity is (are):

The underlying assumption of simple interest is that:

The winner of a government-sponsored lottery is given the choice of receiving her government-guaranteed £10,000 prize now or in one year. Because the winner is certain of getting paid in either case, she should:

In an amortising mortgage, which of the following portions of the fixed payment decreases with the passage of time?

A Treasury security is most likely issued by:

The coupon rate for a fixed-rate bond that a company issued five years ago most likely represents:

Debt securities that have maturities of less than one year are referred to as:

The risk that coupon payments might have to be invested at a rate that reflects current market conditions is called:

The way in which an investor is protected from higher inflation in an inflation-linked bond is through:

Debt securities that mature in 12 years are referred to as:

When compared with common stock, preferred stock most likely has:

Which of these is most likely a characteristic of preferred stock but not of common stock? Preferred stock typically:

Which of these actions will most likely reduce the number of a company's shares outstanding?

Typically, the security issued by a foreign firm that is purchased by a bank for the purpose of issuing a global depositary receipt (GDR) is:

Generally, using a price-to-earnings ratio to value common stock is most likely a(n):

Based on risk, which of the following securities is most likely to produce the highest long-run return?

When used as a risk management tool, the use of derivatives contracts most likely results in a(n):

In forward and futures contracts, the risk of non-fulfilment of contract terms is most likely borne by:

When the buyer of a call option on a stock exercises the option, the seller of the call option most likely must:

The buyer of a credit default swap (CDS):

In a private equity structure, the party that raises the capital and makes decisions is:

Relative to traditional assets, it would be accurate to describe alternative investments as being:

An investor looking to gain equity exposure to real estate in the public market would invest in real estate:

Which of the following is correct with regard to investing in commodities?

Reports from investment research providers are valuable to investors because they:

The position most likely responsible for cash management within a firm is the:

One reason the investment industry provides mostly standardized services to retail investors is because retail investors:

The person or position most likely to deal with constraints created by laws and regulations is the:

The sales and client relations department most likely exists:

If the contributions to a tax-advantaged retirement account are tax deductible, it means that the contributions:

in a capitalized-weighted security market index, the weight assigned to each security is based on the market price of the security:

Which of the following is an example of an indirect investment?

For a hedge fund, the high-water mark is the:

An account in which the capital of two or more investors are pooled together and jointly managed is a:

A security market index in which higher-priced securities have a larger effect on the value of the index is a:

A pooled investment is most likely managed by a(n):

A manager whose mandate is to build a well-diversified portfolio of funds in order to attain a specific active investment strategy will most likely invest in:

A secondary offering of shares most likely is issued in the:

At which stage in the trading process is cash exchanged for securities between parties in a given security trade?

A market in which investors trade with dealers at the prices quoted by dealers is called a(n):

Which of the following act as an agent when filling orders for clients?

In which of the following situations does a company receive additional capital? When the company's shares are sold:

One of the main differences between an exchange and an alternative trading system is that an alternative trading system:

Economies that use resources where they are most valuable are said to be:

Investors who take a total-return perspective:

A shortfall in investment returns will most likely be of highest concern to:

Who bears the risk of the investment portfolio in a defined benefit plan?

Passive investment management is closely associated with:

Rebalancing a portfolio is the process of:

A company's risk management team identifies a particular risk as having a low expected frequency and a low expected severity. The best risk response strategy for such risks is to:

A bank is facing the possibility of not having sufficient capital reserves to meet the requirements of its national banking regulatory authority. Such a possibility is an example of a(n):

As part of the risk management function of a company, best practice suggests that internal auditors should report:

Risk for an investment firm is defined as the:

A limitation to a value at risk (VaR) model regarding its inputs is that the model:

Compliance policies and procedures that address corruption should:

Liquidity risk in the investment industry:

Transactions contracted through central counterparties, such as clearinghouses, margin requirements, and standardized agreements, are mechanisms that reduce:

How do client cash inflows and outflows affect the calculation of holding-period returns when using the time-weighted rate of return method?

For an investor whose portfolio consists solely of domestic risk-free government bonds, benchmarking against an investment-grade corporate bond index is most likely not appropriate because it violates the benchmark selection criterion of:

An investor will prefer investments with high:

If an active fund manager is told that she will be "benchmarked against" a particular stock index, she will:

Which of these statements regarding the information ratio is true?

In which of the following circumstances would it be appropriate to calculate a time-weighted rate of return on an investment, rather than a simple holding-period return? If during the holding period:

Which of the following is used to decompose a fund manager's performance into its various sources of return?

An organization's travel policy document is an example of a(n):

A hedge fund manager sends out a monthly newsletter to her clients that contains summaries of various investments she manages, including historical performance of risk-adjusted returns and returns relative to other comparable hedge funds. This documentation is an example of:

Which of the following is not one of the keys to good policy documentation for internal use?

A statement that all employees will refrain from trading based on non-public information concerning the firm and its clients is an example of a:

Which of the following is considered to be part of document management?