BLOOMBERG MARKET CONCEPTS UPDATED EXAMS SET COMPLETE QUESTIONS AND CORRECT ANSWERS

BLOOMBERG MARKET CONCEPTS
UPDATED EXAMS SET COMPLETE
QUESTIONS AND CORRECT ANSWERS

●● What is a recession
Answer: 2 consecutive quarters of negative GDP growth


●● Global reserve currency
Answer: the preferred currency, US Dollar


●● Major floating currency
Answer: leading 10 currencies


●● Emerging floating currency
Answer: No easy to convert, low liquidity


●● Sentimental analysis
Answer: assumes investors can't always max profits and min risks


●● Yield differential
Answer: Difference in interest rates in currencies

, ●● Direct intervention (FX)
Answer: Buy and sell own currencies


●● Verbal intervention (FX)
Answer: Warn market of buying and selling own currencies


●● IR intervention (FX)
Answer: Adjust IR to increase investor demand


●● Counterparty-settlement risk
Answer: Not paying trader back because of time zones


●● Continuous linked settlement
Answer: removes settlement risk


●● Spot price
Answer: price to exchange one currency for another


●● Call
Answer: BUY