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Economics FAQs

  1. What is QE3 (quantitative easing)?

  2. How is Libor determined?

  3. What is the difference between weighted average shares outstanding and basic weighted average shares?

  4. What are austerity measures?

  5. Why do interest rates change?

  6. What is the relationship between inflation and interest rates?

  7. What does deflation mean to investors?

  8. What is a trade deficit and what effect will it have on the stock market?

  9. What impact does a higher non-farm payroll have on the forex market?

  10. What is an antitrust law?

  11. How do open market operations affect the U.S. money supply?

  12. What is the difference between LIBOR, LIBID and LIMEAN?

  13. Why is Game Theory useful in business?

  14. What is the difference between LIBID and LIBOR?

  15. What was the Marshall Plan?

  16. The real rate of return is the amount of interest earned over and above the:

  17. Which of the following is not needed to calculate the net present value of an investment?

  18. The interest rate used to define the “risk-free” rate of return is the

  19. What's the difference between consumer confidence and consumer sentiment?

  20. Why is the 1982 AT&T breakup considered one of the most successful spinoffs in history?

  21. Which is not a process the Federal Reserve uses to control the level of business activity?

  22. Out of which international body did the World Trade Organization emerge?

  23. How do I use the Nova/Ursa ratio?

  24. Which is NOT an element of Keynesian expenditure?

  25. What is the Mont Pelerin Society?

  26. What is the Keynesian multiplier?

  27. Which is NOT an element of M2 money supply?

  28. What is a growth recession?

  29. Why aren't economists rich?

  30. What was the most miserable day for financial markets according to the Misery Index?

  31. What is the gold standard?

  32. What was the Gold Reserve Act?

  33. What is the difference between an acquisition and a takeover?

  34. Is there a correlation between inflation and house prices?

  35. When and why did the euro make its debut as a currency?

  36. When did the U.S. start using paper money?

  37. How did Dow Chemical defeat an international monopoly in the 1900s?

  38. What is Fisher's separation theorem?

  39. What is a "force majeure"?

  40. What currency is affected by the interest rate decisions of the Bank of England (BoE)?

  41. What is the difference between inflation and stagflation?

  42. What is the salad oil scandal?

  43. What is a baby bell?

  44. Which of the following are tools that are employed by the Federal Reserve in its efforts to control the money supply?

  45. Why do interest rates tend to have an inverse relationship with bond prices?

  46. Why was Microsoft subject to antitrust charges in 1998?

  47. What is GDP and why is it so important?

  48. What economic indicators are especially important to oil traders?

  49. Who is Mr. Copper?

  50. Do hedge funds and mutual funds invest in commodities in high inflation environments?

  51. Does perfect competition exist in the real world?

  52. What is the difference between arithmetic and geometric averages?

  53. How does the marginal tax rate system work?

  54. How do central banks inject money into the economy?

  55. What is an economic moat?

  56. What is the broken window fallacy?

  57. Are oil prices and interest rates correlated?

  58. What is market capitulation?

  59. What is the difference between a merger and a takeover?

  60. What is the candle maker's petition?

  61. What are leading, lagging and coincident indicators? What are they for?

  62. What is the difference between an industry and a sector?

  63. How do interest rate changes implemented by the Fed affect the stock market?

  64. What is the relationship between the PPI and the CPI?

  65. What is inflation and how should it affect my investing?

  66. Why do low interest rates cause investors to shy away from the bond market?

  67. What causes a recession?

  68. What does a cut in interest rates mean for the stock market?

  69. What causes a significant move in the stock market?

  70. What is comparative advantage?

  71. Why are P/E ratios generally higher during times of low inflation?

  72. What is the relationship between oil prices and inflation?

  73. What is the Ricardian vice?

  74. What's the difference between macroeconomics and microeconomics?

  75. Is tracking error a significant measure for determining ex-post risk?

  76. What does "guns and butter" refer to?

  77. How does the government influence the securities market?

  78. How do I calculate the adjusted closing price for a stock?

  79. How do central banks acquire currency reserves and how much are they required to hold?

  80. Who determines interest rates?

  81. Why is the U.S. stock market doing well despite the recent U.S. economic downturn?

  82. What is the difference between stated annual return and effective annual return?

  83. What risks do organizations face when engaging in international finance activities?

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Last Questions Asked:
  1.

    What is QE3 (quantitative easing)?

  2. How is Libor determined?

  3. What is the difference between weighted average shares outstanding and basic weighted average shares?

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