QUESTIONS BRIEFING (Applicable to All Exams) Questions refer to weekly briefing on current developments in the economy. Therefore, an answer code cannot be provided. However, students should be prepared to answer questions like this based on the current briefings and such statistical data as they have been provided or asked to find. The questions are your exam will be different because the economy will be different. 1. The level of investment in Canada, as a proportion of total output, compared to the U.S., is: A) higher and expected to remain so B) higher and expected to fall C) lower and expected to remain so D) lower and expected to rise E) not significantly different At the PRESENT time the economy of the United States is: A) growing somewhat more quickly than that of Canada B) expected to boom in 1990 C) contracting D) in a situation similar to Canada's E) showing no sign of easing inflation The present state of the Canadian economy can best be characterized as: A) growing at last year's rate B) distinctly slowing with no effect on inflation yet C) distinctly slowing with some effect on inflation D) producing sharply lower levels of employment E) recessionary danger is acute Interest rates in Canada have, over the IMMEDIATE past, been: A) basically holding steady B) falling slowly C) rising slowly D) falling quite quickly E) rising quite quickly Recession in Canada TODAY: A) has clearly begun B) appears imminent C) is a real danger, although there are no indications that it is about to begin D) is not a significant danger E) is unlikely altogether
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Briefing
B1
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Inflation in Canada TODAY is: A) out of control B) shows no signs of moderating C) shows small signs of moderating D) rising significantly E) holding steady Interest rates in Canada have: A) fallen to normal range B) risen above normal range C) held about steady D) fallen substantially E) risen substantially Compared to the previous month, employment in Canada is: A) about the same B) much higher C) much lower D) somewhat lower E) somewhat higher Compared to Japan, Canada's rate of growth is: A) normally greater by a substantial degree B) always greater but by a small degree C) always lower but by a small degree D) always lower by a substantial degree E) beginning to become roughly similar At the PRESENT time the economy of the United States is: A) growing somewhat more quickly than that of Canada B) expected to boom in 1990 C) contracting D) in a situation similar to Canada's E) showing no sign of easing inflation Why is China raising interest rates? A) to stimulate growth, and it should do this B) to stimulate growth, and it should not do this C) to slow growth, and it should do this D) to slow growth, and it should not do this E) irrelevant to growth
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Briefing
B2
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Given all the circumstances, should an informed investor have expected the stock market to fall in the late 1990s/early 2000? A) certainly yes B) likely yes C) uncertain D) certainly no likely E) no What happened to Canadian employment in the most recent month? A) rose B) rose, as it usually does C) fell D) fell, as it usually does E) was basically unchanged Compared to the U.S., Canada's rate of job creation is: A) higher B) higher, as it usually is C) lower D) lower, as it usually is E) basically the same Most recently, the core rate of inflation: A) rose B) rose, as it usually does C) fell D) fell, as it usually does E) was basically unchanged In December in Canada employment: A) was more than 5 percent below its peak B) was approaching its peak C) rose in the private sector for the first time since the recession D) fell in the public sector E) none of the above Which of the following is correct? A) the Canadian recession started in the Third Quarter 2008 B) the U.S. recession started in the Fourth Quarter 2008 C) the U.S. recession lasted 3 quarters D) the Canadian recession lasted 3 quarters E) none of the above
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Briefing
B3
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The behaviour of the stock market over the past 6 months suggests that: A) the recession is not over B) future growth is uncertain C) another recession is imminent D) growth is resuming E) none of the above The reactions of the stock markets of the major industrial states to the Great Recession were: A) highly dissimilar B) broadly similar C) muted D) inexplicable E) none of the above According to the most recent briefing, the Bank of Canada believes that the Canadian recovery: A) was driven by the recovery of the U.S. economy B) has been caused by the revival of private sector demand C) was the result of rising exports D) is now self-sustaining E) none of the above The commercial (non-housing) real estate market in the U.S.: A) is healthy, unlike the housing market B) poses no risk to the U.S. banking system C) was responsible for the Great Recession D) is now facing mounting losses E) none of the above According to the latest briefing, the Indian economy in its most recent quarter is: A) decelerating B) growing at a constant rate C) back at its growth rate for 2008 D) exceeding China's equivalent quarterly result E) none of the above China's present economic policies tend to make the world's investors: A) immediately optimistic B) calmly confident B) terrified of an economic collapse C) uneasy D) none of the above
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Briefing
B4
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The Government of Canada announced new controls on mortgage lending: A) over the objection of the banking industry B) with the support of the banking industry in order to revive Canada's struggling housing market C) with the support of a banking sector in order to pre-empt distress in the Canadian housing market D) without the support of the banking factor in order to stabilize housing prices E) none of the above Which countries are starting to take ACTION to avoid exhausting their idle resources? A) Canada and India B) Canada and the U.S. C) U.S. and China D) India and Indonesia E) Australia and the U.S.
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Briefing
B5