单选题ThefollowinginformationforthecurrentyearisavailableforacompanythatpreparesitsfinancialstatementsinaccordancewithU.S.GAAP.Thecompanysoperatingprofit(in$000s)isclosestto:

单选题A $500 investment offers a 7.5 percent annual rate of return. How much will it be worth in four years ? A. $ 650. B. $ 668. C. $ 753.

单选题If market participants come to believe that the expected inflation rate embedded in the current nominal risk-free rate of interest is less than will actually occur, this will have the effect of: A. increasing demand for funds and decreasing the supply until the nominal risk-free rate decreases to reflect the new expectations. B. decreasing demand for funds and increasing the supply until the nominal risk-free rate increases to reflect the new expectations. C. increasing demand for funds and decreasing the supply until the nominal risk-free rate increases to reflect the new expectations.

单选题The law of diminishing returns states that at some point: A. as less of a resource are devoted to production, holding the quantity of other inputs constant, the output will decrease, but at an increasing rate. B. as more of a resource is devoted to production, holding the quantity of other inputs constant, the output will increase, but at a decreasing rate. C. as more of a resource is devoted to production, holding the quantity of other inputs constant, at some point output will begin to decrease.

单选题Arthur Harrow, CFA, is a pharmaceuticals analyst at Dominion Asset Management. His supervisor directs him to prepare separate research reports on Miracle Drug Company and Wonder Drug Company. Harrow's former college roommate and close friend is the president of Miracle. Harrow owns 2000 shares of Wonder, which currently sells for $ 25 a share. Harrow's supervisor is unaware of these facts. According to CFA Institute Standards of Professional Conduct, which of the following action, if any, is Harrow required to take if he writes the research reports? A. Harrow must disclose to Dominion both his relationship with the president of Miracle and his ownership of shares in Wonder. B. Harrow must disclose to Dominion his relationship with the president of Miracle but not his ownership of shares in Wonder. C. Harrow must disclose to Dominion his ownership of shares in Wonder but not his relationship with the president of Miracle.

单选题For derivative contracts, the notional principal is best described as A. the amount of the underlying asset covered by the contract. B. a measure of the actual payments made and received in the contract. C. being, conceptually and in aggregate, the best available measure of the size of the market.

单选题Christine Dobbs is watching a public affairs television program on which one of the participants makes the following Statements: Statement 1: A common resource is an obstacle to the efficient allocation of resources unless it generates external benefits. Statement 2: The idea of utilitarianism suggests that market allocation of resources does not maximize the value of an economy to all individuals. However, achieving the results that utilitarianism regards as optimal involves a loss of economic output. Should Dobbs agree or disagree with these statements? Statement 1 Statement 2 ①A. Disagree Agree ②B. Agree Agree ③C. Agree Disagree A. ① B. ② C. ③

单选题The price value of a basis point (PVBP) for a 7-year, 10 percent semiannual pay bond with a par value of $1000 and yield of 6 percent is closest to:

单选题According to the Keynesian view, an increase in which of the following would most likely decrease current aggregate demand? A. Budget deficit. B. Transfer payments. C. Personal income tax rates.

单选题Robert Necco and Nelson Packard are economists at Economic Research Associates. ERA asks Necco and Packard for their opinions about the effects of fiscal policy on real GDP for an economy currently experiencing a recession. Necco states that real GDP is likely to increase if both government spending and taxes are increased by the same amount. Packard states that if both government spending and taxes are increased by the same amount, there is no expected net effect on real GDP. Regarding the statements made by Necco and Packard: Necco Packard ①A. Correct Correct ②B. Correct Incorrect ③C. Incorrect Incorrect A. ①B. ②C. ③

单选题Are the following two statements about fiscal policy correct? Statement 1: The crowding out effect reduces the multiplier effect of expansionary fiscal policy but does not affect economic growth. Statement 2: A generational imbalance exists if the present value of government benefits to the current generation is not fully paid for by taxes on the current generation. Statement 1 Statement 2 ①A. Correct Correct ②B. Correct Incorrect ③C. Incorrect Correct A. ①B. ②C. ③

单选题Which of the following statements is most accurate in regard to the tax division between buyers and sellers of products with perfectly elastic demand?

单选题Which of the following statements regarding the option adjusted spread (OAS) is least accurate? The option adjusted spread（ ）

单选题An analyst does research about cash flow statement. When a company finances accounts payable, an immediate effect on its cash flow statement is most likely to: A. decrease operating cash flow. B. increase operating cash flow. C. shift cash outflow from operation to a later time period.

单选题Which of the following inventory valuation methods best matches the actual historical cost of the inventory items to their physical flow?

单选题Which of the following yields least likely represents a spot rate? A. 91-day Treasury bill holding yield. B. 2-year Treasury inflation protected security yield. C. 5-year Treasury principal strip yield.

单选题Which of the following is most directly associated with secondary capital markets?

单选题Decreasing accounts payable turnover by delaying payments to suppliers is most likely to cause cash flow from financing activities to:

单选题The direct exchange of securities between investors without using an intermediary or the services of a broker occurs in which of the following markets? A. The third market. B. The fourth market. C. The over-the-counter market.

单选题Which of the following would be assessed first in a top-down valuation approach?