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ITP EXAM questions & answers graded A+ passed
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ITP EXAMWhat happens when a private equity fund wants to exchange and operate a company privately?
They delist it from its exchange
Is a dollar today worth more than a dollar tomorrow?
yes
What is the rise in average prices over time?
Inflation
How is inflation measured?
Consumer price index and Personal Consumption Expenditures Index
Inflation is what type of factor?
Macro
Inflation can be triggered by changes in what market?
Labor market
,Cost Push Inflation is caused by:
supply shocks
What type of inflation is "too much money chasing too few goods"
Demand pull inflation
What are some pros of inflation
Stimulates economy, reduces value of debt
What are cons of inflation
Lower international competitiveness, hurts saves, menu costs (costs to change their prices)
What is the cost of borrowing money?
Interest rates
What is the largest exchange in the world?
New York Stock Exchange
What is the second largest exchange in the world, and is tech and biotech heavy?
Nasdaq
"To promote sustainable growth, high levels of employment, stability of prices to help preserve the
,purchasing power of the dollar and moderate long-term interest rates." is the goal of whom?
The central bank
Who is the current chair of the federal reserve?
Jerome Powell
What are the federal reserves functions
Conducting monetary policy, supervising and regulating financial institutions, maintaining stability,
promoting consumer protection
What are used to control economic growth and inflation?
Interest rates
What do lower interest rates cause?
Individuals to borrow more money
What does raising interest rates cause?
People to become less likely to borrow money
What is the rate at which banks borrow from eachother? (manipulated by fed using policy tools)
Federal funds rate
, What is the rate that the fed charges to loan money to banks?
Discount rate
Who is the discount rate set by?
the fed
What are open market operations?
buying and selling of securities
What are buy side careers
hedge funds, private equity/venture capital, asset management
What are sell side careers?
Investment banking, sales and trading, equity research
What do investment banks do?
Act as an intermediary that provides a variety of financial services
What happens in capital markets?
Finds investors to provide companies with capital
What happens in advisory services
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