Market Indicators: Understanding Economic Signals
10 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What does Gross Domestic Product (GDP) measure?

  • The average change in prices paid by consumers
  • The total value of goods and services produced within a country over a specific period (correct)
  • The percentage of the labor force that is jobless
  • The average change in selling prices received by domestic producers

How does positive GDP growth typically impact the financial markets?

  • It leads to higher bond prices
  • It causes market declines
  • It decreases investor confidence
  • It boosts investor confidence and leads to higher stock prices (correct)

What does the unemployment rate indicate?

  • The total number of jobs created
  • The level of inflation in the economy
  • The percentage of the labor force that is jobless and actively seeking employment (correct)
  • The rate of GDP growth

How does high unemployment generally affect consumer spending and market sentiment?

<p>It decreases consumer spending and leads to bearish market sentiment (B)</p> Signup and view all the answers

What is the significance of the Consumer Price Index (CPI)?

<p>It measures the average change in prices paid by consumers for a basket of goods and services (B)</p> Signup and view all the answers

How can rising CPI affect the financial markets?

<p>It can indicate inflationary pressures, leading to potential interest rate hikes and market volatility (A)</p> Signup and view all the answers

What does the Producer Price Index (PPI) measure?

<p>The average change in selling prices received by domestic producers for their output (D)</p> Signup and view all the answers

How do higher interest rates typically impact economic growth and stock prices?

<p>They dampen economic growth and reduce stock prices (B)</p> Signup and view all the answers

What do housing market indicators, such as housing starts and building permits, signify?

<p>The health and direction of the housing market, influencing construction activity and consumer spending (A)</p> Signup and view all the answers

What is the impact of a positive balance of trade on the domestic currency and market sentiment?

<p>It strengthens the domestic currency and boosts market sentiment (B)</p> Signup and view all the answers

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser