Auto Companies Were Hit Particularly Hard in the Most Recent

question 36

Multiple Choice

Auto companies were hit particularly hard in the most recent recession when compared to foreign competitors, because of the additional burden of

• A)a greatly deteriorated industrial infrastructure.
• B)lack of access to foreign markets.
• C)the inability to get a piece of government stimulus money.
• D)a lack of government subsidies.
• E)paying for health care and pensions.

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Definitions:

Yield Curve Spread

The difference in yields between two different debt instruments, often used to gauge economic expectations.

T-Bond Yield

The annual return investors earn on U.S. Treasury bonds, which is a benchmark for long-term interest rates.

Federal Funds Rate

The interest rate at which banks lend reserve balances to other banks overnight, determined by the Federal Reserve.

Top-Down Analysis

An investment strategy that starts with macroeconomic analysis to identify promising sectors or industries before selecting specific stocks.