1.

A study by the Federal Reserve Bank of New York suggests strong portfolio gains in the past year could be pushing more Americans to retire earlier than they had previously expected. For those thinking about early retirement, which of the following WAS NOT a point raised by Dave Sandstrom in the April 30 Money Talk Podcast?  (Choose one.)

1. Consider how to cover health care costs.
2. There has never been a better time to retire early.
3. Consider the added years of spending you’ll have to cover if you retire early.
4. Don’t assume that recent investment returns will continue forever.

(See correct answer below.)

2.

Speculation over Federal Reserve policies affecting short-term interest rates sometimes drive stock market trading. In discussing market reactions on the May 7 Money Talk Podcast, Kyle Tetting mentioned remarks by Neel Kashkari. Who is Kashkari? (Choose one.)

1. Chair of the Federal Reserve Board
2. Nobel laureate in economics at the University of Chicago
3. President of the Federal Reserve Bank of Minneapolis
4. Treasury secretary

(See correct answer below.)

3.

Reports of some rising prices have fueled concerns that the Fed might act sooner than later on policies that have kept interest rates low. On the May 14 Money Talk Podcast, Kyle Tetting, Art Rothschild and Mike Hoelzl offered reasons not to worry about inflation for now. Which of the following WAS NOT included in their rationale? (Choose one.)

1. The Fed has said it sees transitory inflation that will even out as the economy recovers.
2. The Fed has been transparent and clear in its messages lately, and it’s saying not to worry about inflation at this time.
3. Occasional overreactions to inflation news have tended to settle down within days, as investors have digested developments and weighed the Fed’s responses.
4. Inflation no longer occurs in advanced economies.

(See correct answer below.)

4.

Minutes from the April 27-28 meeting of the Federal Open Market Committee use the word “transitory” eight times to describe factors contributing to discussions of inflation in the U.S. Kyle Tetting, Brian Kilb and Chris Evers talked about the term in the May 21 Money Talk Podcast. In those contexts, what does “transitory” mean? (Choose one.)

1. Episodic, relating to a permanent rise in general inflation that often accompanies the transition from recession to recovery
2. Temporary, referring to fleeting fluctuations in forces of supply or demand that cause prices to rise then settle back again
3. Transit-related, referring to societal costs from deteriorated roads and rail systems as well as fiscal costs to fix them
4. Compacted, relating to costs of certain items rising much less than expected, just as solid-state transistors allowed radios to be miniaturized

(See correct answer below.)

Answers

1.

Answer: Dave DID NOT say b) There has never been a better time to retire early.

Learn more
Retirement investing: Where to begin, a Money Talk Video with Kyle Tetting
Retirement 101: Having a plan, a Money Talk Video with Tom Pappenfus
Having the confidence to retire, a Money Talk Video by Art Rothschild

2.

Answer: c) President of the Federal Reserve Bank of Minneapolis

Kyle also talked about Jerome Powell, who’s chair of the Fed, and Janet Yellen, former Fed chair who’s now Treasury secretary.

Learn more
Neel Kashkari bio, Federal Reserve Bank of Minneapolis
Jerome H. Powell bio, Federal Reserve Board of Governors
Janet Yellen bio, The U.S. Department of the Treasury
For What It’s Worth: Chair, an occasional look at expressions investors encounter

3.

Answer: They DID NOT say d) Inflation no longer occurs in advanced economies.

Learn more
Don’t Fear this Fed, by Kyle Tetting (from 2016)

4.

Answer: Transitory means b) Temporary, referring to fleeting fluctuations in forces of supply or demand that cause prices to rise then settle back again

Learn more
Stocks offset fears of inflation over time, by Kyle Tetting
Talking Money: Inflation, by Adam Baley
Key economic indicators every investor should know, from the Financial Industry Regulatory Authority

Previous Money Talk Quizzes
Money Talk Quiz, May 2021
Money Talk Quiz, April 2021

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(initially posted May 27, 2021)

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