Concept Questions: $1,2,6$

Questions and Problems: $3,5,8,13$

Concept Questions

Monetary Policy $($LO$3,$ CEA$5)$ If the economy was in recession, what monetary policies might the Fed employ?

Exchange Rates $($LO$2,$ CFA$6)$ If you are a U$.$S$.$ investor who believes the Australian dollar is going to appreciate, would that make youmore or less likely to invest in Australian stocks?

Industry Analysis $($LO$1,$ CFA$7)$ Brienly explain the process of top$-$down analysis.

Industry Analysis $($LO$4,$ CFA$7)$ Which sector would be more sensitive to the business cycle: industrials or health care?

Leading Indicators $($LO$2,$ CFA$4)$ Why do you think that consumer sentiment is considered a leading economic indicator?

Inflation $($LO$2,$ CFA$3)$ If you believed inflation was going to increase over the coming years, would you rather invest in short$-$term or long$-$term deht?