Investment Planning Flashcards
1
Q
- Average duration of unemployment
- Change in CPI
- Change in labor cost per unit
- Consumer credit to income
- Value of outstanding loans
- Average prime rate charges by banks
A
Lagging Indicators
2
Q
- Corporate profits
- Unemployment rate
- Interest rates
A
Lagging Indicators
3
Q
- Initial unemployment claims
- Stock prices
- Money supply (M2)
- New manufacturing orders
- New private housing starts
- Consumer sentiment
A
Leading Indicators
4
Q
- Yield curve
- Market volatility
- Consumer confidence index
- Jobless claims
A
Leading Indicators
5
Q
Basic Named Perils
A
S-L-W F-V-V-V-H-E-A-R-T
- Smoke
- Lightning
- Windstorm
- Fire
- Vandalism
- Vehicles
- Volcano
- Hail
- Explosion
- Aircraft
- Riot
- Theft
6
Q
Broad Named Perils
A
FAS-FWD
- Falling objects
- Accidental overflow of water
- Sudden bursting of appliances
- Freezing of system appliance
- Weight of ice, snow, sleet
- Damage of electrical current
7
Q
Business Life Cycle
- GDP, inflation and interest rates increasing
- Unemployment decreasing
A
Expansion
8
Q
Business Life Cycle
- GDP begins to slow
- Inflation and interest rates begin declining
- Unemployment begins to increase
A
Business Life Cycle
Contraction
9
Q
- Employees on payroll
- Personal income
- Industrial production
- Manufacturing sales
A
Coincidental Indicators
10
Q
- Employment
- Real earnings
- GDP
A
Coincidental Indicators
11
Q
DEBT RATIOS
Consumer debt payments should not exceed what percent of what?
A
20% of NET income
12
Q
DEBT RATIOS
Housing debt should be less than or equal to what percent of what?
A
28% of GROSS income
13
Q
DEBT RATIOS
Housing plus all other recurring debt should be less than or equal to what percent of what?
A
36% of GROSS Income
14
Q
Which of the following are non-diversifiable risks?
- Business risk
- Management risk
- Company or industry risk
- Market risk
- Interest rate risk
- Purchasing power risk
A
- Market risk
- Interest rate risk
- Purchasing power risk
15
Q
At what price does an investor receive a margin call price?
A
Loan / 1-Maintenance Margin
