Dalton Complete Flashcards
(250 cards)
1
Q
What are the steps in the Financial Planning Process?
A
- Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
2
Q
Name all business life cycle components.
A
Expansion, Peak, Contraction/Recession, Trough.
3
Q
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
A
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
4
Q
Definition of a Recession
A
Six consecutive months (or two quarters) of declining GDP.
5
Q
Definition of a Depression
A
If the recession lasts for 18 months or six consecutive quarters.
6
Q
Definition of Deflation
A
Opposite of inflation; prices falling; individuals prefer to hold cash.
7
Q
Definition of Disinflation
A
A decline or slowdown in the rate of inflation.
8
Q
What are the three main goals of the Federal Reserve?
A
- Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
9
Q
What is the formula for Margin Call?
A
Loan ÷ (1 – Maintenance Margin).
10
Q
What is the CAPM formula?
A
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
11
Q
What are the steps in the Financial Planning Process?
A
- Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
12
Q
Name all business life cycle components.
A
Expansion, Peak, Contraction/Recession, Trough.
13
Q
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
A
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
14
Q
Definition of a Recession
A
Six consecutive months (or two quarters) of declining GDP.
15
Q
Definition of a Depression
A
If the recession lasts for 18 months or six consecutive quarters.
16
Q
Definition of Deflation
A
Opposite of inflation; prices falling; individuals prefer to hold cash.
17
Q
Definition of Disinflation
A
A decline or slowdown in the rate of inflation.
18
Q
What are the three main goals of the Federal Reserve?
A
- Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
19
Q
What is the formula for Margin Call?
A
Loan ÷ (1 – Maintenance Margin).
20
Q
What is the CAPM formula?
A
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
21
Q
What are the steps in the Financial Planning Process?
A
- Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
22
Q
Name all business life cycle components.
A
Expansion, Peak, Contraction/Recession, Trough.
23
Q
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
A
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
24
Q
Definition of a Recession
A
Six consecutive months (or two quarters) of declining GDP.
25
Definition of a Depression
If the recession lasts for 18 months or six consecutive quarters.
26
Definition of Deflation
Opposite of inflation; prices falling; individuals prefer to hold cash.
27
Definition of Disinflation
A decline or slowdown in the rate of inflation.
28
What are the three main goals of the Federal Reserve?
1. Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
29
What is the formula for Margin Call?
Loan ÷ (1 – Maintenance Margin).
30
What is the CAPM formula?
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
31
What are the steps in the Financial Planning Process?
1. Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
32
Name all business life cycle components.
Expansion, Peak, Contraction/Recession, Trough.
33
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
34
Definition of a Recession
Six consecutive months (or two quarters) of declining GDP.
35
Definition of a Depression
If the recession lasts for 18 months or six consecutive quarters.
36
Definition of Deflation
Opposite of inflation; prices falling; individuals prefer to hold cash.
37
Definition of Disinflation
A decline or slowdown in the rate of inflation.
38
What are the three main goals of the Federal Reserve?
1. Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
39
What is the formula for Margin Call?
Loan ÷ (1 – Maintenance Margin).
40
What is the CAPM formula?
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
41
What are the steps in the Financial Planning Process?
1. Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
42
Name all business life cycle components.
Expansion, Peak, Contraction/Recession, Trough.
43
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
44
Definition of a Recession
Six consecutive months (or two quarters) of declining GDP.
45
Definition of a Depression
If the recession lasts for 18 months or six consecutive quarters.
46
Definition of Deflation
Opposite of inflation; prices falling; individuals prefer to hold cash.
47
Definition of Disinflation
A decline or slowdown in the rate of inflation.
48
What are the three main goals of the Federal Reserve?
1. Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
49
What is the formula for Margin Call?
Loan ÷ (1 – Maintenance Margin).
50
What is the CAPM formula?
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
51
What are the steps in the Financial Planning Process?
1. Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
52
Name all business life cycle components.
Expansion, Peak, Contraction/Recession, Trough.
53
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
54
Definition of a Recession
Six consecutive months (or two quarters) of declining GDP.
55
Definition of a Depression
If the recession lasts for 18 months or six consecutive quarters.
56
Definition of Deflation
Opposite of inflation; prices falling; individuals prefer to hold cash.
57
Definition of Disinflation
A decline or slowdown in the rate of inflation.
58
What are the three main goals of the Federal Reserve?
1. Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
59
What is the formula for Margin Call?
Loan ÷ (1 – Maintenance Margin).
60
What is the CAPM formula?
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
61
What are the steps in the Financial Planning Process?
1. Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
62
Name all business life cycle components.
Expansion, Peak, Contraction/Recession, Trough.
63
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
64
Definition of a Recession
Six consecutive months (or two quarters) of declining GDP.
65
Definition of a Depression
If the recession lasts for 18 months or six consecutive quarters.
66
Definition of Deflation
Opposite of inflation; prices falling; individuals prefer to hold cash.
67
Definition of Disinflation
A decline or slowdown in the rate of inflation.
68
What are the three main goals of the Federal Reserve?
1. Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
69
What is the formula for Margin Call?
Loan ÷ (1 – Maintenance Margin).
70
What is the CAPM formula?
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
71
What are the steps in the Financial Planning Process?
1. Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
72
Name all business life cycle components.
Expansion, Peak, Contraction/Recession, Trough.
73
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
74
Definition of a Recession
Six consecutive months (or two quarters) of declining GDP.
75
Definition of a Depression
If the recession lasts for 18 months or six consecutive quarters.
76
Definition of Deflation
Opposite of inflation; prices falling; individuals prefer to hold cash.
77
Definition of Disinflation
A decline or slowdown in the rate of inflation.
78
What are the three main goals of the Federal Reserve?
1. Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
79
What is the formula for Margin Call?
Loan ÷ (1 – Maintenance Margin).
80
What is the CAPM formula?
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
81
What are the steps in the Financial Planning Process?
1. Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
82
Name all business life cycle components.
Expansion, Peak, Contraction/Recession, Trough.
83
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
84
Definition of a Recession
Six consecutive months (or two quarters) of declining GDP.
85
Definition of a Depression
If the recession lasts for 18 months or six consecutive quarters.
86
Definition of Deflation
Opposite of inflation; prices falling; individuals prefer to hold cash.
87
Definition of Disinflation
A decline or slowdown in the rate of inflation.
88
What are the three main goals of the Federal Reserve?
1. Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
89
What is the formula for Margin Call?
Loan ÷ (1 – Maintenance Margin).
90
What is the CAPM formula?
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
91
What are the steps in the Financial Planning Process?
1. Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
92
Name all business life cycle components.
Expansion, Peak, Contraction/Recession, Trough.
93
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
94
Definition of a Recession
Six consecutive months (or two quarters) of declining GDP.
95
Definition of a Depression
If the recession lasts for 18 months or six consecutive quarters.
96
Definition of Deflation
Opposite of inflation; prices falling; individuals prefer to hold cash.
97
Definition of Disinflation
A decline or slowdown in the rate of inflation.
98
What are the three main goals of the Federal Reserve?
1. Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
99
What is the formula for Margin Call?
Loan ÷ (1 – Maintenance Margin).
100
What is the CAPM formula?
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
101
What are the steps in the Financial Planning Process?
1. Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
102
Name all business life cycle components.
Expansion, Peak, Contraction/Recession, Trough.
103
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
104
Definition of a Recession
Six consecutive months (or two quarters) of declining GDP.
105
Definition of a Depression
If the recession lasts for 18 months or six consecutive quarters.
106
Definition of Deflation
Opposite of inflation; prices falling; individuals prefer to hold cash.
107
Definition of Disinflation
A decline or slowdown in the rate of inflation.
108
What are the three main goals of the Federal Reserve?
1. Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
109
What is the formula for Margin Call?
Loan ÷ (1 – Maintenance Margin).
110
What is the CAPM formula?
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
111
What are the steps in the Financial Planning Process?
1. Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
112
Name all business life cycle components.
Expansion, Peak, Contraction/Recession, Trough.
113
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
114
Definition of a Recession
Six consecutive months (or two quarters) of declining GDP.
115
Definition of a Depression
If the recession lasts for 18 months or six consecutive quarters.
116
Definition of Deflation
Opposite of inflation; prices falling; individuals prefer to hold cash.
117
Definition of Disinflation
A decline or slowdown in the rate of inflation.
118
What are the three main goals of the Federal Reserve?
1. Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
119
What is the formula for Margin Call?
Loan ÷ (1 – Maintenance Margin).
120
What is the CAPM formula?
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
121
What are the steps in the Financial Planning Process?
1. Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
122
Name all business life cycle components.
Expansion, Peak, Contraction/Recession, Trough.
123
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
124
Definition of a Recession
Six consecutive months (or two quarters) of declining GDP.
125
Definition of a Depression
If the recession lasts for 18 months or six consecutive quarters.
126
Definition of Deflation
Opposite of inflation; prices falling; individuals prefer to hold cash.
127
Definition of Disinflation
A decline or slowdown in the rate of inflation.
128
What are the three main goals of the Federal Reserve?
1. Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
129
What is the formula for Margin Call?
Loan ÷ (1 – Maintenance Margin).
130
What is the CAPM formula?
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
131
What are the steps in the Financial Planning Process?
1. Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
132
Name all business life cycle components.
Expansion, Peak, Contraction/Recession, Trough.
133
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
134
Definition of a Recession
Six consecutive months (or two quarters) of declining GDP.
135
Definition of a Depression
If the recession lasts for 18 months or six consecutive quarters.
136
Definition of Deflation
Opposite of inflation; prices falling; individuals prefer to hold cash.
137
Definition of Disinflation
A decline or slowdown in the rate of inflation.
138
What are the three main goals of the Federal Reserve?
1. Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
139
What is the formula for Margin Call?
Loan ÷ (1 – Maintenance Margin).
140
What is the CAPM formula?
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
141
What are the steps in the Financial Planning Process?
1. Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
142
Name all business life cycle components.
Expansion, Peak, Contraction/Recession, Trough.
143
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
144
Definition of a Recession
Six consecutive months (or two quarters) of declining GDP.
145
Definition of a Depression
If the recession lasts for 18 months or six consecutive quarters.
146
Definition of Deflation
Opposite of inflation; prices falling; individuals prefer to hold cash.
147
Definition of Disinflation
A decline or slowdown in the rate of inflation.
148
What are the three main goals of the Federal Reserve?
1. Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
149
What is the formula for Margin Call?
Loan ÷ (1 – Maintenance Margin).
150
What is the CAPM formula?
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
151
What are the steps in the Financial Planning Process?
1. Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
152
Name all business life cycle components.
Expansion, Peak, Contraction/Recession, Trough.
153
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
154
Definition of a Recession
Six consecutive months (or two quarters) of declining GDP.
155
Definition of a Depression
If the recession lasts for 18 months or six consecutive quarters.
156
Definition of Deflation
Opposite of inflation; prices falling; individuals prefer to hold cash.
157
Definition of Disinflation
A decline or slowdown in the rate of inflation.
158
What are the three main goals of the Federal Reserve?
1. Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
159
What is the formula for Margin Call?
Loan ÷ (1 – Maintenance Margin).
160
What is the CAPM formula?
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
161
What are the steps in the Financial Planning Process?
1. Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
162
Name all business life cycle components.
Expansion, Peak, Contraction/Recession, Trough.
163
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
164
Definition of a Recession
Six consecutive months (or two quarters) of declining GDP.
165
Definition of a Depression
If the recession lasts for 18 months or six consecutive quarters.
166
Definition of Deflation
Opposite of inflation; prices falling; individuals prefer to hold cash.
167
Definition of Disinflation
A decline or slowdown in the rate of inflation.
168
What are the three main goals of the Federal Reserve?
1. Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
169
What is the formula for Margin Call?
Loan ÷ (1 – Maintenance Margin).
170
What is the CAPM formula?
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
171
What are the steps in the Financial Planning Process?
1. Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
172
Name all business life cycle components.
Expansion, Peak, Contraction/Recession, Trough.
173
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
174
Definition of a Recession
Six consecutive months (or two quarters) of declining GDP.
175
Definition of a Depression
If the recession lasts for 18 months or six consecutive quarters.
176
Definition of Deflation
Opposite of inflation; prices falling; individuals prefer to hold cash.
177
Definition of Disinflation
A decline or slowdown in the rate of inflation.
178
What are the three main goals of the Federal Reserve?
1. Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
179
What is the formula for Margin Call?
Loan ÷ (1 – Maintenance Margin).
180
What is the CAPM formula?
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
181
What are the steps in the Financial Planning Process?
1. Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
182
Name all business life cycle components.
Expansion, Peak, Contraction/Recession, Trough.
183
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
184
Definition of a Recession
Six consecutive months (or two quarters) of declining GDP.
185
Definition of a Depression
If the recession lasts for 18 months or six consecutive quarters.
186
Definition of Deflation
Opposite of inflation; prices falling; individuals prefer to hold cash.
187
Definition of Disinflation
A decline or slowdown in the rate of inflation.
188
What are the three main goals of the Federal Reserve?
1. Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
189
What is the formula for Margin Call?
Loan ÷ (1 – Maintenance Margin).
190
What is the CAPM formula?
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
191
What are the steps in the Financial Planning Process?
1. Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
192
Name all business life cycle components.
Expansion, Peak, Contraction/Recession, Trough.
193
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
194
Definition of a Recession
Six consecutive months (or two quarters) of declining GDP.
195
Definition of a Depression
If the recession lasts for 18 months or six consecutive quarters.
196
Definition of Deflation
Opposite of inflation; prices falling; individuals prefer to hold cash.
197
Definition of Disinflation
A decline or slowdown in the rate of inflation.
198
What are the three main goals of the Federal Reserve?
1. Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
199
What is the formula for Margin Call?
Loan ÷ (1 – Maintenance Margin).
200
What is the CAPM formula?
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
201
What are the steps in the Financial Planning Process?
1. Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
202
Name all business life cycle components.
Expansion, Peak, Contraction/Recession, Trough.
203
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
204
Definition of a Recession
Six consecutive months (or two quarters) of declining GDP.
205
Definition of a Depression
If the recession lasts for 18 months or six consecutive quarters.
206
Definition of Deflation
Opposite of inflation; prices falling; individuals prefer to hold cash.
207
Definition of Disinflation
A decline or slowdown in the rate of inflation.
208
What are the three main goals of the Federal Reserve?
1. Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
209
What is the formula for Margin Call?
Loan ÷ (1 – Maintenance Margin).
210
What is the CAPM formula?
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
211
What are the steps in the Financial Planning Process?
1. Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
212
Name all business life cycle components.
Expansion, Peak, Contraction/Recession, Trough.
213
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
214
Definition of a Recession
Six consecutive months (or two quarters) of declining GDP.
215
Definition of a Depression
If the recession lasts for 18 months or six consecutive quarters.
216
Definition of Deflation
Opposite of inflation; prices falling; individuals prefer to hold cash.
217
Definition of Disinflation
A decline or slowdown in the rate of inflation.
218
What are the three main goals of the Federal Reserve?
1. Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
219
What is the formula for Margin Call?
Loan ÷ (1 – Maintenance Margin).
220
What is the CAPM formula?
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
221
What are the steps in the Financial Planning Process?
1. Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
222
Name all business life cycle components.
Expansion, Peak, Contraction/Recession, Trough.
223
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
224
Definition of a Recession
Six consecutive months (or two quarters) of declining GDP.
225
Definition of a Depression
If the recession lasts for 18 months or six consecutive quarters.
226
Definition of Deflation
Opposite of inflation; prices falling; individuals prefer to hold cash.
227
Definition of Disinflation
A decline or slowdown in the rate of inflation.
228
What are the three main goals of the Federal Reserve?
1. Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
229
What is the formula for Margin Call?
Loan ÷ (1 – Maintenance Margin).
230
What is the CAPM formula?
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
231
What are the steps in the Financial Planning Process?
1. Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
232
Name all business life cycle components.
Expansion, Peak, Contraction/Recession, Trough.
233
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
234
Definition of a Recession
Six consecutive months (or two quarters) of declining GDP.
235
Definition of a Depression
If the recession lasts for 18 months or six consecutive quarters.
236
Definition of Deflation
Opposite of inflation; prices falling; individuals prefer to hold cash.
237
Definition of Disinflation
A decline or slowdown in the rate of inflation.
238
What are the three main goals of the Federal Reserve?
1. Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
239
What is the formula for Margin Call?
Loan ÷ (1 – Maintenance Margin).
240
What is the CAPM formula?
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
241
What are the steps in the Financial Planning Process?
1. Understanding the Client’s Personal and Financial Circumstances. 2. Identifying and Selecting Goals. 3. Analyze the client’s current course of action and potential alternatives. 4. Developing Financial Plan Recommendations. 5. Presenting Recommendations. 6. Implementing Recommendations. 7. Monitoring the Plan.
242
Name all business life cycle components.
Expansion, Peak, Contraction/Recession, Trough.
243
What direction are inflation, interest rates, unemployment, and GDP headed in each phase of the business cycle?
Peak: Inflation/Interest Rates/GDP high, Unemployment low. Recession: Inflation/Interest Rates/GDP decreasing, Unemployment increasing. Trough: Inflation/Interest Rates/GDP low, Unemployment high. Expansion: Inflation/Interest Rates/GDP increasing, Unemployment decreasing.
244
Definition of a Recession
Six consecutive months (or two quarters) of declining GDP.
245
Definition of a Depression
If the recession lasts for 18 months or six consecutive quarters.
246
Definition of Deflation
Opposite of inflation; prices falling; individuals prefer to hold cash.
247
Definition of Disinflation
A decline or slowdown in the rate of inflation.
248
What are the three main goals of the Federal Reserve?
1. Maintain long-term economic growth. 2. Maintain price levels. 3. Maintain full employment.
249
What is the formula for Margin Call?
Loan ÷ (1 – Maintenance Margin).
250
What is the CAPM formula?
r = rf + β(rm - rf). Where r = required return, rf = risk-free rate, β = beta, rm = market return.
