BLOOMBERG MARKET CONCEPTS EXAM
STUDY SHEET COMPLETE QUESTIONS AND
CORRECT ANSWERS
●● In the US, why is there a strong relationship between unemployment
and GDP?
Answer: Consumer spending accounts for 2/3's of the US economy.
When the number of unemployed consumers rises, there is less
consumer spending.
●● What typically happens to nonfarm payrolls, the PMI indicator, and
the housing starts at the onset of a recession in the Untied 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: Becuase GDP stats 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
●● What is the main reason that investment banks create estimates of
economic indicators?
Answer: To know when specific economic data points are a positive or
negative surprise.
●● Which of the following is the biggest pitfall of economic indicators?
Answer: They are not sufficiently timely to make informed investment
decisions
●● Which of the following is an example of a successful peg?
Answer: Hong Kong dollar against U.S. dollar in 1997
●● Which driver weakened the Swiss franc?
Answer: A surprise change in inflation expectations.
STUDY SHEET COMPLETE QUESTIONS AND
CORRECT ANSWERS
●● In the US, why is there a strong relationship between unemployment
and GDP?
Answer: Consumer spending accounts for 2/3's of the US economy.
When the number of unemployed consumers rises, there is less
consumer spending.
●● What typically happens to nonfarm payrolls, the PMI indicator, and
the housing starts at the onset of a recession in the Untied 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: Becuase GDP stats 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
●● What is the main reason that investment banks create estimates of
economic indicators?
Answer: To know when specific economic data points are a positive or
negative surprise.
●● Which of the following is the biggest pitfall of economic indicators?
Answer: They are not sufficiently timely to make informed investment
decisions
●● Which of the following is an example of a successful peg?
Answer: Hong Kong dollar against U.S. dollar in 1997
●● Which driver weakened the Swiss franc?
Answer: A surprise change in inflation expectations.
