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Questions and Answers
Which investment bank had the highest total fees in 2021?
Which investment bank had the highest total fees in 2021?
What percentage of Goldman Sachs' fees were derived from M&A activities?
What percentage of Goldman Sachs' fees were derived from M&A activities?
Which of the following investment banks was the second largest in terms of deal value in M&A?
Which of the following investment banks was the second largest in terms of deal value in M&A?
Which investment bank had a deal value in bonds that was slightly under $600,000M?
Which investment bank had a deal value in bonds that was slightly under $600,000M?
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What percentage of Morgan Stanley's equity deals were made from IPOs?
What percentage of Morgan Stanley's equity deals were made from IPOs?
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Where was the largest percentage of M&A deals executed for Goldman Sachs?
Where was the largest percentage of M&A deals executed for Goldman Sachs?
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Which investment bank had the lowest fees among the top three in 2021?
Which investment bank had the lowest fees among the top three in 2021?
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What percentage of JP Morgan's bond deal value was based on investment grade?
What percentage of JP Morgan's bond deal value was based on investment grade?
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What is one reason stocks are considered riskier than bonds for investors?
What is one reason stocks are considered riskier than bonds for investors?
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Why might a company choose to issue stock instead of bonds?
Why might a company choose to issue stock instead of bonds?
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What does a higher return generally indicate in terms of investment risk?
What does a higher return generally indicate in terms of investment risk?
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In terms of receiving payments, what differentiates shareholders from bondholders?
In terms of receiving payments, what differentiates shareholders from bondholders?
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If dividends are not paid, what is the investor's situation regarding their stock investment?
If dividends are not paid, what is the investor's situation regarding their stock investment?
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What is an effect of high economic risk on investment returns?
What is an effect of high economic risk on investment returns?
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How can purchasing bonds help a company manage its debt-to-equity ratio?
How can purchasing bonds help a company manage its debt-to-equity ratio?
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What would be the return on investment if a T note purchased at 96.50 matures with a 2.5% coupon rate and a face value of $10,000?
What would be the return on investment if a T note purchased at 96.50 matures with a 2.5% coupon rate and a face value of $10,000?
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What is the expected return on investment for the T note, given the provided details?
What is the expected return on investment for the T note, given the provided details?
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What term describes the difference between the interest rate on a 10-year AA bond and the yield on a 10-year T bond?
What term describes the difference between the interest rate on a 10-year AA bond and the yield on a 10-year T bond?
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If the Money Supply is increasing by 3% while GDP is increasing by 3.5%, what type of monetary policy does this represent?
If the Money Supply is increasing by 3% while GDP is increasing by 3.5%, what type of monetary policy does this represent?
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Which group is considered to carry the most risk in a company?
Which group is considered to carry the most risk in a company?
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What is one key advantage for a company going public?
What is one key advantage for a company going public?
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What is a major disadvantage associated with a company's Initial Public Offering (IPO)?
What is a major disadvantage associated with a company's Initial Public Offering (IPO)?
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If a company's financial intermediary is a life insurance company, what role does it primarily serve?
If a company's financial intermediary is a life insurance company, what role does it primarily serve?
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What term best describes the impact of rising Money Supply alongside rising GDP at a slower rate?
What term best describes the impact of rising Money Supply alongside rising GDP at a slower rate?
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Study Notes
Macroeconomic Variables
- Consumption's effect on GDP: Up
- Investment's effect on GDP: Up
- Inventory's effect on GDP: Up
- Government spending's effect on GDP: Up
- Exports' effect on GDP: Up
- Imports' effect on GDP: Down
- Money supply's effect on GDP: Up
- Unemployment's effect on GDP: Down
- GDP's effect on Trade Deficit: Up (Imports rise with income & consumption, while exports depend on other countries' GDP.)
- GDP's effect on Unemployment: Down
- Prices' effect on Expected Inflation: Up
- Prices' effect on Demand for Money: Up
- Demand for Money's effect on IR: Up
- Money Supply's effect on IR: Down
- Government spending's effect on IR: Up (Higher govt spending increases demand for money which increases interest rates.)
Additional Notes
- Wages are the price of labor
- As wages rise, demand falls
- Companies sometimes layoff workers when wage rates are too high
- Population's effect on Wages: Down
- Disposable income's effect on Consumption: Up
- Unemployment's effect on Consumption: Down
- Home prices' effect on Consumption: Down
- Stock portfolio value's effect on Consumption: Up
- Taxes' effect on Disposable income and Consumption: Down
- Taxes' effect on Government Deficit: Down
- Taxes' effect on Investments: Down
- Net income's effect on Dividends: Up
- Net Income's effect on Hiring: Up
- Net Income's effect on Unemployment: Down
- Net Income's effect on Stock Prices: Up
- Labor costs' effect on Net Income: Down
- Employment's effect on Productivity: Down (Initial effect, less experienced workers)
- Productivity's effect on Costs: Down
- Expected Capital Prices' effect on Investment: Up
- Production's effect on Employment: Up
- Inventory's effect on Production: Down
- Income's effect on Imports: Up
- Government securities' effect on Money Supply: Down
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Description
Explore the intricate connections between various macroeconomic variables and their impact on GDP. This quiz covers the effects of consumption, investment, government spending, and more on economic performance. Test your understanding of how these factors interplay in the broader economic landscape.
