Bloomberg market concepts Revies Exam
Inaccurately because the scope of GDP measurements can change. - How accurately do GDP
portray the economy and why?
It went down - Consider the formula GDP = C+I+G+(X-M). A country is undergoing a boom
in consumption of domestic and foreign luxury goods. In one year, the dollar growth in
imports is greater than the dollar growth in domestic consumption. Assuming nothing else
has changed, what happened to GDP?
C= Consumer spending
I = Investment (Gross Fixed Capital Formation)
G= Government Spending
X= Exports
M= Imports - what is the meaning of each letter in the GDP formula, C+I+G+(X-M).
Sweden performed better - Here is the most important economic data for Australia and
Sweden. which economy did better year-over-year (YOY) in the fourth quarter of 2013
compared to the fourth quarter of 2012? Use the two charts to investigate.
Consumer spending accounts for two-thirds of the U.S. economy when the number of
unemployed consumers rises, there is less consumer spending. - In the United States, why
is there a strong correlation between unemployment and GDP?
The country has deflation. The bottom line is nominal growth and the top line is real
growth. - 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?
PMI - Which of the following lines is the best leading economic indicator?
Nonfarm payrolls go down, the PMI indicator goes DOWN, the housing starts goes down. -
What typically happens to nonfarm payrolls, the PMI indicator, and housing starts at the
onset of a recession in the United States?
Timeliness of release - Which of the following qualities of economic indicators do investors
prize the most?
, Because GDP statistics are released well after other economic indicators. - Why is the
release of GDP statistics less interesting to investors than the release of other economic
indicators?
GDP - Which of the following important U.S. economic indicators is only available on a
quarterly basis?
nonfarm payrolls - Which economic indicator is most directly linked to unemployment?
To know when specific economic data points are a positive or negative surprise. - What is
the main reason that investment banks create estimates of economic indicators?
They do not consistently presage turning points. - Which of the following is the biggest
pitfall of economic indicators?
Japan - Which country is the fourth biggest importer and exporter?
Hong Kong dollar against the U.S. dollar in 1997. - Which of the following is not an example
of a failed peg?
The currency strengthens. - What generally happens when a central bank unexpectedly
increases interest rates?
A surprise change in inflation expectations - Which driver weakened the Swiss franc?
How currencies may be overvalued or undervalued. - What does the Big Mac index show?
Surprise changes in interest rates, inflation, and trade. - Which of the following are short-
term drivers of currency valuation?
Global investors are attracted by higher bond yields in high interest rate countries. - By
what mechanism do interest rates affect currency values?
U.S. Stocks rally on Fed's Surprise reduction of Interest Rate. - Which of these headlines
could move a currency pair?
2% - What is the most common target inflation rate for an advanced economy?
To halt the vicious cycle of deflation - What was the primary goal of Abenomics?
Inaccurately because the scope of GDP measurements can change. - How accurately do GDP
portray the economy and why?
It went down - Consider the formula GDP = C+I+G+(X-M). A country is undergoing a boom
in consumption of domestic and foreign luxury goods. In one year, the dollar growth in
imports is greater than the dollar growth in domestic consumption. Assuming nothing else
has changed, what happened to GDP?
C= Consumer spending
I = Investment (Gross Fixed Capital Formation)
G= Government Spending
X= Exports
M= Imports - what is the meaning of each letter in the GDP formula, C+I+G+(X-M).
Sweden performed better - Here is the most important economic data for Australia and
Sweden. which economy did better year-over-year (YOY) in the fourth quarter of 2013
compared to the fourth quarter of 2012? Use the two charts to investigate.
Consumer spending accounts for two-thirds of the U.S. economy when the number of
unemployed consumers rises, there is less consumer spending. - In the United States, why
is there a strong correlation between unemployment and GDP?
The country has deflation. The bottom line is nominal growth and the top line is real
growth. - 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?
PMI - Which of the following lines is the best leading economic indicator?
Nonfarm payrolls go down, the PMI indicator goes DOWN, the housing starts goes down. -
What typically happens to nonfarm payrolls, the PMI indicator, and housing starts at the
onset of a recession in the United States?
Timeliness of release - Which of the following qualities of economic indicators do investors
prize the most?
, Because GDP statistics are released well after other economic indicators. - Why is the
release of GDP statistics less interesting to investors than the release of other economic
indicators?
GDP - Which of the following important U.S. economic indicators is only available on a
quarterly basis?
nonfarm payrolls - Which economic indicator is most directly linked to unemployment?
To know when specific economic data points are a positive or negative surprise. - What is
the main reason that investment banks create estimates of economic indicators?
They do not consistently presage turning points. - Which of the following is the biggest
pitfall of economic indicators?
Japan - Which country is the fourth biggest importer and exporter?
Hong Kong dollar against the U.S. dollar in 1997. - Which of the following is not an example
of a failed peg?
The currency strengthens. - What generally happens when a central bank unexpectedly
increases interest rates?
A surprise change in inflation expectations - Which driver weakened the Swiss franc?
How currencies may be overvalued or undervalued. - What does the Big Mac index show?
Surprise changes in interest rates, inflation, and trade. - Which of the following are short-
term drivers of currency valuation?
Global investors are attracted by higher bond yields in high interest rate countries. - By
what mechanism do interest rates affect currency values?
U.S. Stocks rally on Fed's Surprise reduction of Interest Rate. - Which of these headlines
could move a currency pair?
2% - What is the most common target inflation rate for an advanced economy?
To halt the vicious cycle of deflation - What was the primary goal of Abenomics?
