The Year Ahead — A Dean’s Multiple Choice Quiz

Terry Connelly is dean of the Ageno School of Business at Golden Gate University and is frequently quoted on business, financial, and economic issues by Bay Area local, as well as national, news media.

(1) Federal Reserve Chairman Ben Bernanke’s best move in 2008:

(a) surprises financial markets with a 50 basis point cut in interest rates in January, getting stocks off to a roaring start;

(b) holds to a slow, measured reduction in rates through mid-year, then keeps them steady to ward-off inflation;

(c) arranges with the SEC for a special “accounting pause” allowing major banks to defer fire sales of their remaining mortgage-backed securities positions thus staving off a credit depression;

(d) finally cracks his composure and publicly asks Alan Greenspan to just shut-up and stop quoting odds on a recession.

(2) The biggest economic “bust” of 2008:

(a) the Chines stock market (after the Olympics);

(b) ethanol;

(c) the new Google phone;

(d) the US dollar.

(3) Most notable “upside surprise” of 2008:

(a) housing stocks;

(b) bank stocks;

(c) the Japanese economy;

(d) the San Francisco Giants.

(4) First to resign in 2008:

(a) Treasury Secretary Paulson;

(b) Baseball Commissioner Bud Selig;

(c) Hillary Clinton’s campaign manager;

(d) Senator Larry Craig.

(5) “Commodity of the Year”

(a) water;

(b) oil;

(c) uranium;

(d) gold;

(e) solar silicon.

(6) “Comeback of the Year”

(a) Citigroup;

(b) Katie Couric;

(c) Tony Blair;

(d) George W. Bush;

(e) land-line telephones;

(f) Don Imus.

(7) “Bombshell of the Year” in California:

(a) Supreme Court rules in favor of gay marriage;

(b) Gov Schwarzenegger’s health care initiative approved by the voters;

(c) John McCain wins Republican Presidential primary;

(d) State deficit balloons;

(e) all of the above.

( “Financial Scandal of the Year” will involve:

(a) Iraq contracts;

(b) major debt rating agencies;

(c) television evangelists;

(d) a leading Wall Street securities firm;

(e) the Chinese stock market;

(f) cell phone billing.

(9) Democratic Presidential nominee:

(a) Hillary Clinton;

(b) John Edwards;

(c) Barack Obama;

(d) Joe Biden.

(10) Democratic Vice Presidential nominee:

(a) Bill Richardson;

(b) Joe Biden;

(c) Chris Dodd;

(d) George Mitchell;

(e) Evan Bayh;

(f) Bob Kerry.

(11) Republican Presidential nominee:

(a) Rudy Giuliani;

(b) Mike Huckabee;

(c)    John McCain;

(d) Mitt Romney;

(e) Fred Thompson.

(12) Republican Vice Presidential nominee:

(a) Governor Crist of Florida;

(b) ex-Governor Bush of Florida;

(c)  Sam Brownback;

(d) Lindsay Graham;

(e) Mike Huckabee;

(f) Kay Bailey Hutchinson;

(g) Haley Barbour.

(13) Will run as an Independent for President:

(a) Mike Bloomberg;

(b) Lou Dobbs;

(c)  Ralph Nader;

(d) Ron Pau

(14) Decisive state in Electoral College Presidential vote:

(a) Florida;

(b) Ohio;

(c)  Missouri;

(d) Colorado;

(e) none of the above: a “landslide” winner.

(15) Most significant military confrontation involving US forces will occur in:

(a) Afghanistan;

(b) Iraq;

(c)  Iran;

(d) Congo.

(16) Direction of US stock market in 2008:

(a) starts weak, finishes strong as US escapes recession;

(b) starts weak, finishes weaker on recession fears for 09;

(c)  starts strong, fades into summer but rallies through election;

(d) a significant “crash” event due to further deterioration in credit and business spending.

(17) Most successful company of the year:

(a) Apple (again);

(b) McDonald’s (dethrones Starbucks for coffee);

(c) Goldman Sachs (Federal Reserve borrows from them);

(d) Boeing (the 787 flies);

(e) Google.

(1 Most economically significant strike action in 2008:

(a) Nigerian oil workers;

(b) South African miners;

(c) French civil servants;

(d) US truck drivers.

(19) “Deal of the Year”:

(a) JP Morgan buys Bear Stearns;

(b) NY Stock Exchange buys NY Mercantile Exchange;

(c) Yahoo and AOL merge;

(d) Google buys Garmin (GPS);

(e) Chinese acquire a major Canadian oil company;

(f) Russian telco buys major US wireless carrier.

(20) Price of oil per barrel at year end:

(a) $105;

(b) $85;

(c) $65;

(d) 75 Euros.

The Dean’s Answers: 1-b; 2-a; 3-c; 4-c; 5-a; 6-c; 7-e; 8-b; 9-c; 10-d; 11-c; 12-c; 13-b; 14-e; 15-a; 16-c; 17-b; 18-d; 19-b; 20-b.