About This Chapter
Economic Factors - Chapter Summary
In this chapter are fun lessons you can study at your convenience to improve your knowledge of the business cycle, GNP, gross domestic product, economy models and much more. Top instructors with a wealth of knowledge about economic factors have developed all of our lessons. By completing this chapter, you can prepare to do the following:
- Define and explain the importance of financial statements
- List and describe business cycle indicators for economic activity
- Share and use the formula for the inflation rate
- Differentiate between cyclical stocks and defensive stocks
- Compare and contrast value stocks and growth stocks
- Provide the definition of monetarism
- Discuss the balance of payments with financial accounts
- Explain the impact of currency appreciation and depreciation
Feel free to use this chapter as a study guide for the portion of your exam covering economic factors. Review any lessons you feel can strengthen your existing knowledge, and clarify concepts you don't fully grasp by sending questions to our subject-matter experts. Use our short quizzes and practice test to check your comprehension of lesson concepts and become familiar with the types of questions you will see on the exam. If you need to study while out and about, be sure to access our chapter materials using your tablet or smartphone.
1. What Are Financial Statements? - Definition, Purpose & Importance
Financial statements are big players in the world of accounting. In this lesson, you will be introduced to each of the financial statements. You will also learn what their role is in the accounting industry, who they are important to and why they are important.
2. The Business Cycle: Economic Performance Over Time
Learn the economic terms that describe economic performance over time and how indicators such as unemployment and inflation behave throughout these economic fluctuations.
3. Business Cycle Indicators for Economic Activity
This lesson discusses time-sensitive economic indicators, including leading, coincident, and lagging indicators. Each gives us a different, yet interesting, view of the economy. Review examples of each to learn more, then take a brief quiz.
4. What Is Inflation Rate? - Definition & Formula
Have you ever heard about inflation on the news? Ever wonder how inflation is calculated? In this lesson, you'll learn what the inflation rate is and how to calculate it. You'll also have a chance to take a short quiz.
5. What are Cyclical Stocks? - Definition & Examples
This lesson goes over cyclical stocks whose prices change in sync with that of larger economic cycles. We'll go over a few examples and discuss their importance in a portfolio.
6. What are Defensive Stocks? - Definition & Examples
In this lesson, we go over the topic of defensive stocks. You'll learn what they are, how you can spot them by looking at some key examples, and why they're important in an investment portfolio.
7. Value Stocks vs. Growth Stocks: Definitions, Differences & Examples
This lesson compares and contrasts value stocks vs. growth stocks. You'll learn what they are, their qualities, and when they tend to perform better or worse with respect to the general economy.
8. Economy Models: Classical Vs Keynesian
In this lesson, we explore two important models that economists use to decipher capitalist economies and discuss when each is best used to describe the economy.
9. Monetarism: Definition & Overview
Economists are like most people: they don't always agree on how things work or should work. Monetarism is one of several schools of thought in economics. In this lesson, you'll learn about monetarism and its policy approach. A short quiz follows.
10. Balance of Payments with Financial Accounts: Measuring Foreign Trade
Learn about the balance of payments and the two key components that make it up. Discover what the financial/capital account is and how it relates to foreign trade and surpluses and deficits.
11. Gross Domestic Product: Definition and Components
Learn how economists measure the total production of an economy using gross domestic product (GDP). This lesson also outlines the components that make up a GDP. How do we calculate the economic value of a nation?
12. GNP: Definition & Formula
This lesson explores the economic concept known as gross national product, or GNP. We'll discuss the formula for calculating GNP as well as the differences between GNP and the better-known GDP.
13. Currency Appreciation & Depreciation: Effects of Exchange Rate Changes
Find out how changes in the exchange rate can affect the economy and your own individual situation. Discover how these currency changes can increase and decrease your purchasing power and standard of living.
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Other chapters within the SIE Exam Study Guide course
- Federal Laws & Regulations in the Securities Industry
- Regulatory Entities & Agencies
- Market Participants & Structure
- Federal Reserve & Market Impacts
- Equity Securities
- Debt Instruments
- Options in the Financial Industry
- Investment Companies & Packaged Products
- Municipal Fund Securities
- DPPs, REITs & Hedge Funds
- Exchange-Traded Products (ETPs)
- Overview of Investment Risks
- Trading Orders & Strategies
- Investment Returns & Trade Settlement
- Corporate Actions
- Customer Account Types & Registrations
- Anti-Money Laundering (AML)
- Books, Records & Privacy in Finance
- Public Communications & Suitability Requirements
- Prohibited Activities in the Financial Industry
- Regulatory Framework in the Security Industry