BLOOMBERG MARKET CONCEPTS EXAM PREP QUESTIONS AND ANSWERS FULL SOLUTION VIEW

BLOOMBERG MARKET CONCEPTS EXAM
PREP QUESTIONS AND ANSWERS FULL
SOLUTION VIEW

●● GDP formula
Answer: Consumption + Investment + Government spending + (exports
- imports)


●● Real GDP Growth
Answer: nominal GDP growth - inflation


●● Inflation
Answer: - General increase in the price of services, products and goods,
reducing the purchasing power of money
- Unit of money tomorrow buys less than the same unit of money would
buy today
- Dollar today is worth more than a dollar tomorrow


●● Monthly PCE Report
Answer: - Primary source of inflation data
- price changes in consumer goods and services
- shows what consumers are spending money on

, - Personal Consumption Expenditures


●● Monthly CPI Index
Answer: - Primary source of inflation data
- measures average change in prices paid by households for a basket of
goods and services
- Consumer Price Index


●● Unemployment indicator
Answer: - Political indicator
- When the economy shrinks, employment declines


●● Business Confidence
Answer: - Economic indictor
- Institute of supply management has the PMI


●● PMI
Answer: - Above 50: optimism
- Below 50: Pessimism
- Indicator of GDP growth
- Purchasing managers index