Fixed Income EXAMINATION SET 2026
SOLVED QUESTIONS GRADED A+
● Here is a chart showing both nominal GDP growth and real GDP
growth for a country. Which of the following can be a true statement at
the time the chart was captured? Answer: The country has inflation. The
top line is nominal growth and the bottom line is real growth.
● Which of the following lines is the best leading economic indicator?
Answer: PMI
● GDP per capita is a measure of prosperity because it divides the total
GDP of a country by its population. Which of the below forecasts for a
country would result in the highest GDP per capita growth? Answer: An
increase of 2% in GDP and a population growth of 0%
● What typically happens to nonfarm payrolls, the PMI indicator, and
housing starts at the onset of a recession in the United States? Answer:
Nonfarm payrolls go DOWN, the PMI indicator goes DOWN, the
housing starts goes DOWN.
● Which of the following qualities of economic indicators do investors
prize the most? Answer: Timeliness of release
, ● Why is the release of GDP statistics less interesting to investors than
the release of other economic indicators? Answer: Because GDP
statistics are released well after other economic indicators.
● Which of the following important U.S. economic indicators is only
available on a quarterly basis? Answer: GDP
● Which economic indicator is most directly linked to the average
person's cost of living? Answer: CPI
● Examine China's predicted economic activity on the below table
captured in April 2019. As of that date, which of the following terms
would have best described the predicted growth in the Chinese economy
for 2021? (graph) Answer: Deceleration
● How have economic forecasts for this country evolved as shown in
the chart below? Answer: Minimal Change
● These charts show data for four countries as of early 2016. For each
country, the purple line denotes historic real GDP growth. The white line
denotes the consensus estimated real GDP growth. The red line denotes
the most pessimistic analyst forecast. The green line denotes the most
optimistic analyst forecast. For which country does the analyst
community exhibit the widest disagreement about 2016 growth
prospects? Answer: Russia
SOLVED QUESTIONS GRADED A+
● Here is a chart showing both nominal GDP growth and real GDP
growth for a country. Which of the following can be a true statement at
the time the chart was captured? Answer: The country has inflation. The
top line is nominal growth and the bottom line is real growth.
● Which of the following lines is the best leading economic indicator?
Answer: PMI
● GDP per capita is a measure of prosperity because it divides the total
GDP of a country by its population. Which of the below forecasts for a
country would result in the highest GDP per capita growth? Answer: An
increase of 2% in GDP and a population growth of 0%
● What typically happens to nonfarm payrolls, the PMI indicator, and
housing starts at the onset of a recession in the United States? Answer:
Nonfarm payrolls go DOWN, the PMI indicator goes DOWN, the
housing starts goes DOWN.
● Which of the following qualities of economic indicators do investors
prize the most? Answer: Timeliness of release
, ● Why is the release of GDP statistics less interesting to investors than
the release of other economic indicators? Answer: Because GDP
statistics are released well after other economic indicators.
● Which of the following important U.S. economic indicators is only
available on a quarterly basis? Answer: GDP
● Which economic indicator is most directly linked to the average
person's cost of living? Answer: CPI
● Examine China's predicted economic activity on the below table
captured in April 2019. As of that date, which of the following terms
would have best described the predicted growth in the Chinese economy
for 2021? (graph) Answer: Deceleration
● How have economic forecasts for this country evolved as shown in
the chart below? Answer: Minimal Change
● These charts show data for four countries as of early 2016. For each
country, the purple line denotes historic real GDP growth. The white line
denotes the consensus estimated real GDP growth. The red line denotes
the most pessimistic analyst forecast. The green line denotes the most
optimistic analyst forecast. For which country does the analyst
community exhibit the widest disagreement about 2016 growth
prospects? Answer: Russia
