CFM Financial Markets & Economic Indicators

Question 1

What does the Dow Jones Industrial Average represent?

Accepted Answer

An index tracking major U.S. industrial firms

Answer

A measure of global commodities

Answer

A bond market index

Answer

An index of private U.S. companies

Question 2

Which economic indicator reflects the total value of goods and services produced?

Accepted Answer

Gross Domestic Product

Answer

Consumer Price Index

Answer

Unemployment Rate

Answer

Producer Price Index

Question 3

What does an inverted yield curve typically indicate?

Accepted Answer

Recession warning

Answer

Economic boom

Answer

Inflation rise

Answer

Stock market rally

Question 4

Which organization is responsible for setting U.S. monetary policy?

Accepted Answer

Federal Reserve

Answer

Department of Treasury

Answer

IRS

Answer

SEC

Question 5

What is the Consumer Price Index (CPI) used to measure?

Accepted Answer

Inflation levels

Answer

Economic growth

Answer

Stock performance

Answer

Interest rates

Question 6

What does a bullish stock market indicate?

Accepted Answer

Rising investor confidence and stock prices

Answer

Declining investor confidence

Answer

Falling stock prices

Answer

High unemployment

Question 7

Which of the following reflects the cost of borrowing money?

Accepted Answer

Interest rates

Answer

GDP

Answer

Inflation

Answer

Exchange rate

Question 8

What is the primary role of the Securities and Exchange Commission (SEC)?

Accepted Answer

Ensure safe trading practices in financial markets

Answer

Monitor monetary policy

Answer

Regulate interest rates

Answer

Manage the national budget

Question 9

What is an economic indicator of employment trends?

Accepted Answer

Unemployment rate

Answer

CPI

Answer

GDP

Answer

Federal funds rate